SPECIAL ISSUE

Kenya Gazette Supplement No. 71 (Acts No. 12)

REPUBLIC OF KENYA

–––––––

KENYA GAZETTE SUPPLEMENT

ACTS, 2016

NAIROBI, 13th May, 2016

CONTENT

Act—
PAGE

The Mining Act, 2016 ..............................................................................209

PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER , NAIROBI

 209
THE MINING ACT
No. 12 of 2016
Date of Assent: 6th May, 2016
Date of Commencement: 27th May, 2016

ARRANGEMENT OF SECTION
Section
PART I—PRELIMINARY
1—Short title
2—Scope of the Act.
3—Act not to apply to petroleum and hydrocarbon gases.
4—Interpretation.
5—Guiding principles.
PART II—OWNERSHIP OF MINERALS
6—Ownership of minerals.
7—Saving for custom.
8—Right of pre-emption.
9—Discovery of minerals.
PART III—GENERAL PRINCIPLES
10—Restriction on the acquisition of mineral rights.
11—Acquisition of rights in minerals.
PART IV—ADMINISTRATION
12—General powers of the Cabinet Secretary.
13—Cabinet Secretary may declare areas reserved for
small-scale operations.
14—Cabinet Secretary may declare areas reserved for
tendering.
15—Cabinet Secretary may restrict or exclude areas
from operations.
16—Strategic Minerals.
17—Access to service.
18—Appointment of Directors.
19—Removal of a director from office.
20—Functions of the Director of Mines.
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21—Functions of the Director of Geology.

PART V—MINING INSTITUTIONS AND BODIES
22—Establishment of the National Mining Corporation.
23—Headquarters of the Corporation.
24—Functions of the Corporation.
25—Board of the corporation.
26—Chief Executive Officer of the Corporation.
27—National Mining Corporation Regulations.
28—Establishment of a Minerals and Metal Commodity
Exchange.
29—Access to geosciences information.
30—Mineral Rights Board.
31—Functions of the Mineral Rights Board.
PART VI—GENERAL PROVISIONS ON MINERAL
RIGHTS
32—Categories of mineral rights.
33—Feedback on status of applications except mining
lease.
34—Mineral right applications
35—Form of mineral right.
36—Mineral rights in excluded and restricted areas.
37—Mineral rights on private land.
38—Mineral rights on community land.
39—Consent or otherwise.
40—Compulsory acquisition of land for prospecting and
mining.
41—Tendering for mineral rights.
42—Conditions attaching to mineral rights.
43—Directions concerning good mining practice.
44—Mineral rights to be exercised reasonably and
responsibly.
45—Registered address.
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46—Employment and training of Kenyans.
47—Preference in employment.
48—Government participation in mining licence.
49—Local equity participation
50—Preference for local products.
51—Assignments, transfers, mortgage and trade of
mineral rights.
52—Preparation of reports.
53—Annual financial reports.
54—Power to require additional information.
55—Report by the Cabinet Secretary.
56—Priority of applications.
57—Treatment of applications.
58—Conditions for grant of mineral rights for large scale
operations.
59—Withdrawal of an application.
Large scale operations
60—Application of Part.
61—Application for a reconnaissance licence.
62—Maximum area of Reconnaissance Licence.
63—Term of a Reconnaissance Licence.
64—Restrictions on grant of Reconnaissance Licence.
65—Rights conferred by a Reconnaissance Licence.
66—Minerals obtained under Reconnaissance Licence.
67—Obligations under Reconnaissance Licence.
68—Form of Reconnaissance Licence.
69—Record- keeping and reporting requirements.
70—Amendment of programme for reconnaissance.
71—Right to surrender Reconnaissance Licence.
Prospecting Licence
72—Application for prospecting licence.
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73—Maximum area of prospecting licence.

74—Term of prospecting licence.
75—Rights conferred by prospecting licence.
76—Minerals obtained under prospecting licence.
77—Obligations under prospecting licence.
78—Form of prospecting licence.
79—Record-keeping and reporting requirements.
80—Amendment of programme for prospecting
operations.
81—Renewal of prospecting licence.
82—Application for renewal of prospecting licence.
83—Term for renewal.
84—Relinquishment, consolidation etc.
Retention Licence
85—Eligibility for retention licence.
86—Application for retention licence.
87—Term of retention licence.
88—Rights conferred by retention licence.
89—Obligations under retention licence.
90—Record-keeping and reporting requirements.
91—Compulsion to apply for mining licence by
retention licence holder.
Artisanal Miners Operations
92—Application of Part.
93—Establishment of offices in the County.
94—Artisanal Mining Committee.
95—Qualification of applicants for an Artisanal Mining
Permit.
96—Duration of a permit.
97—Revocation of a permit.
98—Operations of Artisanal Miners.
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99—Compensation of use of land.
100—Sale of Minerals.
Mining Licence

101—Application for mining licence.

102—Restrictions in respect of mining licences.
103—Consideration of applications.
104—Application by holder of prospecting licence.
105—Notice of refusal.
106—Form of mining licence.
107—Term of mining licence.
108—Rights conferred by mining licence.
109—Obligations under mining licence.
110—Record-keeping and reporting requirements.
111—Amendment of programme of mining operations.
112—Newly discovered minerals.
113—Cessation, suspension, or curtailment of
production in respect of mining licences.
114—Renewal of mining licence.
115—Application for renewal of mining licence.
116—Term of renewal.
PART VII—MINERAL AGREEMENTS
117—Mineral agreement.
118—Power to negotiate mineral agreements.
119—Publication of mineral agreements.
120—Requirements for conclusion and execution of
mineral agreements.
121—Consistency with legislation.
122—Distinction between large scale operations and
small scale operations.
Small Scale Operations
123—Categories of mineral rights relating to small scale
operations.
124—Eligibility for mineral rights relating to small scale
operations.
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Reconnaissance Permit
125—Application for a reconnaissance permit.
126—Rights conferred by a Reconnaissance Permit.
127—Obligations under reconnaissance permit.
128—Mineral Rights on Community land.
Prospecting Permit
129—Application for prospecting permit.
130—Notice to applicants.
131—Term and size of prospecting permit.
132—Rights conferred by prospecting permit.
133—Obligations under prospecting permit.
134—Renewal of prospecting permit.
135—Term of renewal
Mining Permit

136—Application for mining permit

137—Approval of application for mining permit.
138—Term of mining permit.
139—Rights conferred by mining permit.
140—Obligations under mining permit.
141—Renewal of mining permit
142 —Term of renewal.
PART VIII—SURRENDER, SUSPENSION AND
REVOCATION OF MINERAL RIGHTS
143—Application for approval of surrender.
144—Approval required for the surrender of mineral
right.
145—Notification of approval of surrender.
146—Effect of surrender.
147—Grounds for suspension and revocation
148—Effect of revocation.
149—Assets on termination.
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150—Delivery of records and documents on termination.
PART IX—SURFACE RIGHTS, COMPENSATION
AND DISPUTES
151—Evidence of mineral right to be produced.
152—Right to graze livestock and cultivate land.
153—Principles of compensation.
154—General provisions on dispute resolution.
155—Determination of disputes by Cabinet Secretary.
156—Procedure for determination of disputes by the
Cabinet Secretary.
157—Appeals.
PART X—DEALINGS IN MINERALS
158—Disposal of minerals.
159—Authorisation to deal in minerals.
160—Application for mineral dealer’s licence.
161—Term of mineral dealer’s licence.
162—Obligations under mineral dealer’s licence.
163—Record-keeping obligations of holder of mineral
dealer’s licence.
164—Mineral dealers permit.
165—Dealings in diamonds.
166—Application for diamond dealer’s licence.
167—Term of diamond dealer’s licence.
168—Obligations under diamond dealer’s licence.
169—Appointment of agent by holder of diamond
dealer’s licence.
170—Mines support.
Import and Export of Minerals
171—Export of minerals.
172—Import of minerals.
Suspension and Revocation of Licence
173—Suspension and revocation
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174—Effect of revocation
175—Delivery of records and documents on revocation
PART XI—HEALTH, SAFETY AND
ENVIRONMENT
176—Environmental laws to prevail.
177—Water rights laws to prevail.
178—Occupational health and safety.
179—Land use.
180—Requirement of site restoration and mine closure
plans.
181—Environmental protection bonds.
PART XII─FINANCIAL PROVISIONS
182—Fees.
183—Royalties.
184—Transfer of mineral right.
185—Record to be kept by a mineral rights holder
186—Payment of fees, charges and royalties
187—Default in paying royalties
188—Reduction or suspension of royalties
189—Recovery of royalty, fees and other charges
190—Transfer pricing
PART XIII—RECORDS AND REGISTRATION OF
MINERAL RIGHTS
191—Register of mineral rights
192—Requirement to enter information in register.
193—Power to correct register.
194—Replacement of originals.
195—Evidentiary certificates.
PART XIV—MONITORING, COMPLIANCE AND
ENFORCEMENT
196—Appointment of inspectors of mines.
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197—General powers of search and inspection.
198—Power to intercept and detain minerals sent by post
or courier
199—Power of arrest
200—Court orders to cease operations.
201—Powers to prosecute.
202—Offences relating to unauthorised operations
203—Offences relating to unauthorised possession of
minerals.
204—Offences relating to mineral rights holders.
205—Offences relating to monitoring and inspection.
206—Offences relating to records and statements.
207—Offences relating to conditions of licences and
permits.
208—Offences relating to salting.
209—Offences relating to malicious placing of minerals
on premises.
210—Offences relating to the unlawful disposal, export,
or import of minerals.
211—Offences relating to the unlawful disclosure of
information.
212—Offences by bodies corporate, partnerships,
principals and employees.
213—Attempts and abetment.
214—Burden of proof.
215—General penalty.
216—Court orders relating to cancellation of licences
and permits.
PART XV—MISCELLANEOUS PROVISIONS
217—Insurance cover.
218—Notices.
219—Immunity of officials.
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220—Prohibition against public officers acquiring

interests.
221—Power to publish manuals, codes and guidelines.
222—Radioactive minerals.
223—Power to make Regulations.
224—Regulation timelines.
PART XVI—REPEALS, SAVINGS AND
TRANSITIONAL PROVISIONS
225—Repeals and savings.
FIRST SCHEDULE— CLASSIFICATION OF
MINERALS
SECOND SCHEDULE— CRITERIA FOR
DETERMINING SMALL
SCALE PROSPECTING
AND MINING
OPERATIONS
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AN ACT of Parliament to give effect to Articles 60, 62
(1)(f), 66 (2), 69 and 71 of the Constitution in so far
as they apply to minerals; provide for prospecting,
mining, processing, refining, treatment, transport
and any dealings in minerals and for related
purposes
ENACTED by the Parliament of Kenya as follows—
PART I—PRELIMINARY PROVISIONS
1. This Act may be cited as the Mining Act, 2016. Short title.

2. (1) This Act shall apply to the minerals specified Scope of the Act

in the First Schedule.

(2) The Cabinet Secretary may from time to time, by
notice in the Gazette, amend the First Schedule to this Act.
3. Save to the extent provided for in this Act, this Act not to apply
to petroleum and
Act shall not apply to matters relating to petroleum and hydrocarbon
hydrocarbon gases. gases.

4. In this Act, unless the context otherwise Interpretation.

requires—
“application” includes—
(a) an application for the grant, renewal, transfer,
assignment or surrender of a mineral right; or
(b) an application for the grant or renewal of a
mineral dealer’s licence or a diamond dealer’s
licence;
“arm’s-length value” means the purchase price under
an immediate sale transaction in an open market where the
purchase price for the sale –
(a) is not influenced by any special relationship or
other arrangement between the parties to the
transaction ,other than the immediate sale itself;
and
(b) is not affected by any non-commercial or other
considerations; and specifically excludes any
barter, swap, exchange, or transfer price
arrangements or any restricted transaction that is
associated with special financial, commercial or
other considerations;
“artisanal mining” means traditional and customary
mining operations using traditional or customary ways and
means;
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“artisanal mining permit” means a permit issued under

section 95;
“banker” includes a manager, cashier or any other
officer acting in that capacity of a company engaged in the
business of banking within Kenya and in compliance with
the provisions of the Banking Act;
“block or cadastral unit” means a pseudo-quadrilateral
formed by two meridians of longitude and two parallels of Cap.488.
latitude of the Cadastral Graticule spaced fifteen seconds
apart;
“Cabinet Secretary” means the Cabinet Secretary for
the time being responsible for mining;
“community” means−
(a) a group of people living around an exploration and
mining operations area; or
(b) a group of people who may be displaced from land
intended for exploration and mining operations;

“Community Development Agreement” means an

agreement entered into between a large-scale mining
licence holder and a community;
“construction minerals” includes stones, gravel, sands,
soils, clay, volcanic ash, volcanic cinder and any other
minerals used for the construction of buildings, roads,
dams, aerodromes and landscaping or similar works, and
such other minerals as the Cabinet Secretary may from
time to time declare to be construction minerals, by notice
published in the Gazette;
“company” has the meaning assigned to it under the
Companies Act;
“Corporation” means the National Mining
Corporation established in section 22;
“Council of County Governors” means the Council of
County Governors established under section 19 of the
Intergovernmental Relations Act;
“day” means a calendar day;
“diamond” includes a rough and uncut diamond;
“Director of Geological Survey” means the Director
of Geological Survey appointed under section 18;
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“Director of Mines” mean the Director of Mines No. 2 of 2012.

appointed under section 18;

“geologist” means a person who is registered as
geologist in accordance with the Geologists’ Registration
Act,1993;
“environment” has the meaning assigned to it under
the Environmental Management and Coordination
Act,1999;
“environmental impact assessment licence” means an
environmental impact assessment licence granted under the
Environmental Management and Coordination Act,1999;
“excavation” means a trench, pit, shaft, dredging,
brine pumping or other work which is related to operations No. 10 of 1993.

under a mineral right;

“financial difficulty” in respect of a company or other
body corporate, means that the company or body No.8 of 1999.

corporate—
(a) is in liquidation;
(b) is the subject of a subsisting court order for its
winding up or dissolution; or
(c) has made a composition or arrangement with its
creditors which remains in effect;
“first-come, first-served” means the policy of
considering and approving applications based on the order
of receiving the applications;
“geology” means the scientific and research aspects of
the solid earth and its processes;
“geological report” means a report made by a
geologist;
“gross value” means the arm’s-length value of
minerals or mineral products at the point of sale within
Kenya, without any discounts, commissions or deductions;
“groundwater” has the meaning assigned to it under
the Water Act;
“holder” , in respect of a mineral right ,a licence or
permit under this Act, means –
(a) a person to whom a mineral right is granted; or
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(b) the person to whom a mineral right is transferred

or assigned;
“inspector of mines” means a public officer who has
been appointed in accordance with section 196;
“land” has the meaning assigned to it in Article 260 of
the Constitution;
No.8 of 2002.
“large scale operation” means a prospecting or mining
operation that is a large scale operation in accordance with
this Act;
“licence area” means the area or areas of land covered
by a prospecting licence, a retention licence or a mining
licence under this Act;
“liquidator” has the meaning assigned to it under the
Companies Act;
“maritime zones” has the meaning assigned to it under
the Maritime Zones Act;
“member” means a member of the Board appointed
under section 25;
“mine” —
(a) when used as a noun, includes an excavation or
system of excavations made for the purpose of, or
in connection with, the extraction of minerals or
mineral products, and includes an open-cast pit,
quarry and any area where a mineral is won by
dredging brine pumping, evaporation or other
means; and
(b) when used as a verb, means the carrying out of a
mining operation and includes tailing; No.17of
2015
“mines support” means─
(a) contract mining services which include top soil
Cap. 371.
and waste removal, drilling and blasting,
excavating and haulage of ore to plant on turnkey
basis;
(b) assay laboratory services;
(c) drilling and blasting services;
(d) mineral exploration services for a holder of a
mineral right;
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2016 Mining No. 12

(e) contract mining services for small scale and
artisanal mining, which include mining and
processing of ore reclamation re-vegetation and
management of mining operations;
(f) any other services specifically and exclusively
related to mining, which the Cabinet Secretary
considers necessary for the effective and
sustainable development of the mining industry;
“mineral dealer” means any entity or person licenced
to carry out mineral dealings;
“mineral dealings” means –
(a) buying minerals;
(b) selling minerals;
(c) bartering minerals;
(d) depositing or receiving minerals as a pledge or
security; or
(e) cutting, polishing, processing, refining and
treating minerals;
“mineral dealer’s permit” means a permit issued in
accordance with section 164;
“mineral deposit” means a mass of naturally occurring
minerals of economic value;
“mine waste and tailings” means the residue of mining
operations that includes gravel, sand, slime, or other
substances that are discarded in the course of mining
operations;
“mineral” means a geological substance whether in
solid, liquid or gaseous form occurring naturally in or on
the earth, in or under water, in mine waste or tailing and
includes the minerals specified in the First Schedule but
does not include petroleum, hydrocarbon gases or
groundwater;
“mineral agreement” means a mineral agreement
entered into in accordance with section 117;
“mineral product” for the purposes of royalty a
product of mining operations, the product of extraction in
mining operations of a metal or a precious mineral from a
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mineral and the product of beneficiation in mining

operations of a mineral, but excluding waste and tailings;
“mineral right” means –
(a) a prospecting licence;
(b) a retention licence;
(c) a mining licence;
(d) a prospecting permit;
(e) a mining permit; or
(f) an artisanal permit;
“Mineral Rights Board” means the Board established
under section 30;
“mining area” means an area or areas of land that are
covered by a mining licence;
“mining bond” means an obligatory payment or cash
deposit that may be required of a mineral right holder as
guarantee for the due implementation of an approved
mining programme;
“mining permit” means a permit granted in
accordance with this Act, which authorises the holder to
carry out small scale mining operations;
“mining licence” means a licence relating to large
scale operations which authorises the holder to carry out
mining operations;
“mining operations” means an operation carried out in
connection with a mine-
(a) to win a mineral from where it occurs;
(b) to extract metal or precious mineral from a
mineral so won, or to beneficiate a mineral so
won; or
(c) to dispose of a mine waste or tailings resulting
from winning ,extraction or benefaction;
“National Land Commission” means the National
Land Commission established under Article 67 of the
Constitution;
“permit area” means the area covered by a prospecting
permit or a mining permit;
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2016 Mining No. 12

“petroleum” has the meaning assigned to it under the
Petroleum (Exploration and Production) Act;
“precious minerals” means the minerals specified in
Part B of the First Schedule;
“precious stones” means the minerals specified in Part
C of the First Schedule;
“Principal Secretary” means the Principal Secretary in
the State Department for the time being responsible for
mining;
“programme for mining operations” in respect of a
mining licence means –
(a) a programme of an intended mining operation
prepared by the holder of the licence and approved
by the Director of Mines on the grant or renewal
of the licence; or
(b) where the programme is amended pursuant to this
Act, means the programme as so amended;
“programme for prospecting operations” means a
programme of intended prospecting operations prepared by
the applicant for a prospecting licence and approved by the
Cabinet Secretary on the grant or renewal of the licence,
and where the programme is amended pursuant to this Act,
means the programme as so amended;
“prospecting area” means the area or areas of land Cap.308.

covered by a prospecting permit or licence;

“prospecting licence” means a licence relating to large
scale operations which authorises the holder to carry out
prospecting operations;
“prospecting operations” means operations carried out
offshore and on land to search for and define the extent of a
mineral deposit and to determine its economic value;
“prospecting permit” means a permit relating to small
scale operations which authorises its holder to carry out
prospecting operations;
“public officer” has the meaning assigned to it under
Article 260 of the Constitution;
“Public Service Commission” means the Public
Service Commission established under Article 233(1) of
the Constitution;
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No. 12 Mining 2016

“radioactive mineral” means a mineral that contains

by weight at least one-twentieth of one per cent (0.05 %) of
uranium or thorium or any combination thereof, including,
but not limited to, monazite sand and other ores containing
thorium, carnotite, and pitchblende;
“reconnaissance” means the operations and works to
carry out the non-intrusive search for mineral resources by
geophysical surveys, geochemical surveys, photo
geological surveys or other remote sensing techniques and
surface geology in connection therewith, but excludes
drilling and excavations;
“reconnaissance area” means an area that is subject to
a reconnaissance licence;
“reconnaissance licence” means a licence granted
under section 61 of this Act;
“register” means the register of mineral rights
established under this Act;
“retention area” means the area or areas of land
covered by a retention licence;
“retention licence” means a retention licence granted
under this Act;
“small scale operation” means a prospecting or
mining operation as described by the Second Schedule to
this Act;
“strategic minerals” means minerals declared to be
strategic minerals under this Act;
“transfer’’ includes to assign or trade;
“unwrought precious metal” means precious metal in
any form whatsoever, which is not manufactured or made
up into an article of industry or of the arts, and includes
amalgam, slimes, slags, precious metal concentrates, pots,
battery chips, sweepings from reduction works and
scrapings and by-products of unrefined precious metal and
precious metal which has been smelted into the form of
bullion but does not include ore in situ; and
“water resource” has the meaning assigned to it under No. 8 of 2002.
the Water Act, 2002.
5. The Cabinet Secretary, the Principal Secretary and Guiding
principles.
any person administering this Act shall be guided by the
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values and principles enshrined in the Constitution and in
particular Articles 10, 66 (2), 201 (c) and (d), and 232 of
the Constitution and the principles of leadership and
integrity set out under Chapter Six of the Constitution.
PART II—OWNERSHIP OF MINERALS
6. (1) Every mineral— Ownership of
minerals.
(a) in its natural state in, under or upon land in Kenya;
(b) in or under a lake, river, stream, or water courses
in Kenya;
(c) in the exclusive economic zone and an area
covered by the territorial sea or continental shelf,
is the property of the Republic and is vested in the
national government in trust for the people of Kenya.
(2) Subsection (1) applies despite any right or
ownership of or by any person in relation to any land in, on
or under which any minerals are found.
(3) The national government’s control over minerals
vested in it shall be exercised in accordance with the
provisions of this Act.
(4) For the purpose of this Act, the surface of the
Earth shall be deemed to be divided in accordance with the
co-ordinates represented in the official maps of Kenya held
at the Survey of Kenya at a scale of 1: 50,000−
(a) by the meridian of Greenwich and by meridians
that are at a distance from that meridian of 15 or a
multiple of 15 seconds of longitude;
(b) by the equator and by parallels of latitude that are
at a distance from the equator of 15 or a multiple
of 15 seconds of latitude, into sections
(“geometric sections”) each of which is bounded;
(c) by portions of those 2 meridians that are at a
distance from each other of 15 seconds of
longitude; and
(d) by portions of 2 of those parallels of latitude that
are at a distance from each other of 15 seconds of
latitude.
(5) For purposes of this Act—
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(a) a geometric section that is wholly within Kenya

constitutes a block; and
(b) where only part of a geometric section is within
Kenya, that part constitutes a block.
(6) Despite the provisions of subsection (5), fractions
of blocks as may be prescribed shall be acceptable in the
case of permits granted for small-scale and artisanal mining
operations.
7. (1) Nothing in this Act shall prevent any person Saving for
custom.
from taking, subject to such conditions as may be
prescribed from time to time by the Cabinet Secretary, soil,
clay iron, salt or soda from any land, except land within the
area of a mineral right, from which it has been the custom
of the member of the community to which that person
belongs to take the same.
(2) The Cabinet Secretary may, by notice in the
Gazette, and with the advice of the Mineral Rights Board,
prescribe materials of customary usage.
8. (1) The State has a right of pre-emption of all Right of pre-
emption.
strategic minerals raised, won or obtained within the
territory of Kenya before they are sold.
(2) The Cabinet Secretary may make Regulations to
provide for the exploration, mining, processing and export
of strategic minerals and strategic mineral deposits.
9. (1) A person who discovers any minerals, for Discovery of
minerals.
which there is no apparent holder of a mineral right or on
any area of land which is not held by that person under a
mineral right that confers rights on the holder to conduct
prospecting or mining operations for minerals, shall report
the discovery to the Cabinet Secretary.
(2) The Cabinet Secretary shall, immediately upon
receipt of a report under subsection (1) issue to the person
an acknowledgement in writing of the receipt of the report.
(3) Subject to sub-section (1), a person who reports
the discovery of any mineral shall be granted the first right
of refusal to apply for a mineral right over the area of
discovery.
PART III—GENERAL PRINCIPLES
10. A person shall not search for, prospect or mine Restrictions on
the acquisition of
any mineral, mineral deposit or tailings in Kenya unless mineral rights.
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2016 Mining No. 12

that person has been granted a permit or licence in
accordance this Act.
11. (1) A mineral right may be granted to or be held Acquisition of
rights in minerals.
by a person who –
(a) is of sound mind;
(b) has attained the age of eighteen years;
(c) is an undischarged bankrupt;
(d) has the required technical capacity, expertise,
experience and financial resources, however this
shall not be a requirement for artisanal and small
scale mining operations wholly owned by
Kenyans; and
(e) is not otherwise disqualified under any written
law.
(2) A mineral right may be granted to or be held by a
company which –
(a) is registered and established in Kenya;
(b) has not commenced voluntary winding up
pursuant to the Companies Act;
(c) is not subject to winding up by a court pursuant to
the Companies Act; or
(d) is not in liquidation. No. 17 of 2015
(3) Subject to sub-section (2), the directors of the
company shall be required to demonstrate the required
technical capacity, expertise, experience and financial
capacity.
(4) The provisions of subsections (1) (d) and (3) shall
not apply to artisanal miners.
(5) In this section the word “established” means that
the company is-
(a) operating in the registered office subject to the
provisions of the Companies Act; and
(b) in operation within Kenya.
PART IV—ADMINISTRATION
12. (1) The Cabinet Secretary shall be responsible for General powers of
the Cabinet
the general administration of this Act. Secretary.
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(2) In the administration of this Act, the Cabinet

Secretary shall respect and uphold the principles and values
enshrined in Article 201 (c) and (d); and Article 69 (1) (a)
and (h) of the Constitution .
(3) Unless otherwise provided for in this Act, the
Cabinet Secretary shall make Regulations to prescribe the
procedure for—
(a) consideration of the applications made under this
Act; and
(b) negotiation, grant, revocation, suspension or
renewal of mineral rights.
13. (1) The Cabinet Secretary shall upon Cabinet Secretary
may declare areas
recommendation of the Mineral Rights Board, by notice in reserved for
the Gazette, designate any area of land to be an area small-scale
operations.
reserved exclusively for small scale mining operations.
(2) The Cabinet Secretary may designate an area to be
an area reserved exclusively for small scale and artisanal
mining operations, if—
(a) designating the area would not be incompatible
with the continued enjoyment of an existing
mineral right; or
(b) written consent has been given by an authority,
agency, the Cabinet Secretary or other person
required to do so under this Act.
(3) This section does not affect the right of an owner
or a lawful occupier of the area covered by the mining
permit to undertake non-mining operations or activities in
any area to which it applies.
14. (1) The Cabinet Secretary shall, in a manner as Cabinet Secretary
may declare areas
may be prescribed in Regulations, designate any area of reserved for
land to be an area reserved for applications by tender for tendering.
large scale operations.
(2) The Cabinet Secretary may designate any area of
land to be an area reserved for applications by tender for
large scale operations, if—
(a) designating the area would not be incompatible
with the continued enjoyment of an existing
mineral right; and
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(b) written consent has been given by an authority,
agency, the Cabinet Secretary or any other person
required to do so under this Act.
15. The Cabinet Secretary shall upon recommendation Cabinet Secretary
may restrict or
of the Mineral Rights Board, by notice in the Gazette, exclude areas
exclude such areas as may be specified in the notice to be from operations.
areas excluded from the operations under a mineral right or
in which such operations are restricted, if-
(a) designating the area would not be incompatible
with the continued enjoyment of an existing
mineral right; or
(b) written consent has been given by an authority,
agency, the Cabinet Secretary or any other person
required to do so under any written law.
16. (1) The Cabinet Secretary shall advise and seek Strategic
Minerals.
the approval of the Cabinet to declare certain minerals or
mineral deposits to be strategic minerals or strategic
mineral deposits.
(2) All radioactive minerals are strategic minerals.
(3) The Cabinet Secretary may, with the advice of the
Mineral Rights Board, prescribe the manner for dealing
with the discovery, exploration, mining, processing and
export of strategic minerals and strategic mineral deposits.
17. (1) There is established— Access to service.

(a) the Directorate of Mines; and

(b) the Directorate of Geological Survey.
(2) Each directorate shall be headed by a director.
(3) The Cabinet Secretary shall ensure reasonable
access to the services of the directorates established under
subsection (1) in all parts of the Republic, so far as it is
appropriate to do so having regard to the nature of the
services offered.
(4) The Cabinet Secretary may establish such other
directorates as may be necessary.
18. (1) A director shall be competitively recruited and Appointment of
Directors.
appointed by the Public Service Commission.
(2) In appointing a director, the Public Service
Commission shall take into consideration the relevant
qualification and nature of functions the director is required
to undertake.
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(3) Without prejudice to subsection (2), a person is

qualified to be appointed as a director, if that person –
(a) is a citizen of Kenya;
(b) holds a degree in mining or geology, as the case
may be, from a university recognized in Kenya;
(c) has had at least ten years proven experience at
management level; and
(d) meets the requirements of Chapter Six of the
Constitution.
(4) A Director shall hold office for a term of three
years, which may be renewed once.
19. (1) A director may be removed from office by the Removal of a
director from
Public Service Commission ,in accordance with the terms office.
and conditions of service, for—
(a) inability to perform the functions of the office due
to physical or mental incapacity;
(b) gross misconduct;
(c) incompetence or neglect of duty;
(d) violation of the Constitution or any other written
law; or
(e) any other ground that would justify removal from
office under the terms and conditions of service.
(2) A director shall not be removed from office, unless
he or she has been given—
(a) sufficient notice of the intended removal from
office; and
(b) an opportunity to respond to the grounds for his or
her intended removal from office.
20. (1) The Director of Mines shall, through the Functions of the
Director of
Principal Secretary, be responsible to the Cabinet Secretary Mines.
for —
(a) the day to day operation of the Directorate of
Mines;
(b) promoting the effective and efficient management
and the development of mineral resources, and the
mining sector;
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(c) exercising regulatory administration and
supervision over all prospecting, mining,
processing, refining and treatment operations,
transport and any dealings in minerals, including
import and export of minerals;
(d) ensuring compliance with conditions relating to
mineral rights;
(e) ensuring compliance with the requirements of this
Act;
(f) making any lawful orders as are necessary for the
performance of the functions and duties under this
Act;
(g) reviewing, assessing and approving prospecting
and mining programmes;
(h) preparing the necessary reports required under this
Act ;
(i) facilitating access to information by the public,
subject to any confidentiality restrictions;
(j) carrying out investigations and inspections
necessary to ensure compliance with the
provisions of this Act;
(k) providing advice and support to holders of mineral
rights on proper and safe mining methods;
(l) exercising regulatory administration and
supervision over the use of commercial explosives
in accordance with the Explosives Act;
(m) providing advice during the negotiation of mineral
agreements;
(n) promoting co-operation among state agencies, Cap.115.
county governments, the private sector, research
bodies, non-governmental organizations and other
organizations which are engaged in programmes
related to mining and activities to enhance the
administration and operation of this Act;
(o) advising on the development of policy to ensure
compliance with international conventions and
national policies relating to the sustainable
development of the mineral resources and ensure
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that mining operations take into account local and

community values; and
(p) performing such other functions as may be
assigned by the Cabinet Secretary, this Act or any
other written law.
(2) The Director of Mines or a duly authorized officer
may, at all reasonable times, enter upon any land, licence
area, permit area or mine, or any premises for the purpose
of-
(a) inspecting such area, premises or workings and
examining prospecting or mining operations or the
processing, refining and treatment of minerals
being carried out thereat;
(b) ascertaining whether the provisions of this Act are
being complied with;
(c) taking soil samples or specimen of rocks, ore,
concentrates, tailings or minerals situated upon
such area, premises or workings for the purpose of
examination or assay;
(d) examining books, accounts, vouchers, logs,
journals, documents or records of any kind
required to be kept under this Act, the terms and
conditions of any mineral right, permit, licence or
mineral agreement and taking copies of such
books, accounts, vouchers, documents or records;
or
(e) obtaining such other information as deemed
necessary.
(3) The Director of Mines or a duly authorised officer
may, with respect to the health and safety of persons
employed by a holder of a mineral right -
(a) issue directions in writing; or
(b) impose restrictions, including temporarily
suspending any prospecting or mining operation
on the holder or any person so employed.
(4) In exercising the powers under subsections (2)
and (3), the Director or a duly authorised officer shall
ensure that as little damage or inconvenience as possible is
caused to the legitimate owner or lawful occupier of the
land in respect of which the powers are exercised.
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(5) A person whose land or property is damaged as a
result of the exercise of the powers of the Director of
Mines under subsection (1) is entitled to fair, prompt and
full compensation for such damage in accordance with this
Act.
21. (1) The Director of Geological Survey shall, Functions of the
Director of
through the Principal Secretary, be responsible to the Geology.
Cabinet Secretary for —
(a) the day to day operation of the Directorate of
Geological Survey;
(b) providing geoscience expertise and data to the
government on all matters related to geology and
the development of minerals;
(c) undertaking geological, geophysical, geochemical,
seismological and hydro-geological surveys,
investigations and mapping aimed at defining the
character and distribution of rocks and superficial
deposits and determining the mineral potential of
Kenya;
(d) conducting geo-environmental studies;
(e) monitoring of seismic activities and mapping of
areas of potential geohazards;
(f) conducting geological analysis and valuations;
(g) developing a national repository of geo-science
information through the compilation, publication
and dissemination of information and data
concerning the geology and mineral resources of
Kenya and facilitate access to this information by
the general public;
(h) promoting private sector interest and investment
in mineral exploration by providing geological
information and services to prospective investors;
(i) maintaining a laboratory, library and record
facilities as may be necessary for the discharge of
the functions;
(j) providing geoscience expertise in evaluations of
prospecting and mining applications;
(k) providing support to the Director of Mines in
relation to exercising regulatory administration
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and supervision over all prospecting and mining

operations;
(l) undertaking audits of mineral right holders’
geological sampling and assaying processes; and
(m) performing any other function as may be assigned
by the Cabinet Secretary, this Act or any other
written law.
(2) In the performance of his duties, the Director of
Geological Survey or a duly authorised officer may─
(a) enter any licence or permit area;
(b) upon informing the lawful owner or legal
occupant, enter into or upon any land for the
purpose of carrying out surveys;
(c) take soil samples or specimens of rocks,
concentrate, tailings or minerals from any licence
or permit area for the purpose of examination or
assay;
(d) break up the surface of the land for the purpose of
ascertaining the rocks or minerals within or under
it; and
(e) dig up any land and fix any post, stone, mark or
object to be sued in the survey of such land.
(3) In exercising the powers under subsection (2), the
Director or a duly authorized officer shall ensure that as
little damage or inconvenience as possible is caused to the
legitimate owner or lawful occupier of the land in respect
of which the powers are exercised.
(4) A person whose land or property is damaged as a
result of the exercise of the powers of the Director of
Geology under subsection (1) shall be entitled to fair,
prompt and full compensation for such damage in
accordance with this Act.
PART V—MINING INSTITUTIONS AND BODIES
22. (1) There is established the National Mining Establishment of
National Mining
Corporation, which shall be the investment arm of the Corporation.
national government in respect of minerals.
(2) The Corporation shall be a body corporate with
perpetual succession, and a common seal and shall, in its
corporate name, be capable of—
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(a) suing and being sued;
(b) taking, purchasing and disposing of movable and
immovable property;
(c) borrowing money with the approval of the
National Treasury in accordance with the relevant
law;
(d) entering into contracts; and
(e) doing such other things as may be necessary for
the proper discharge of its functions under this
Act, which may be lawfully done or performed by
a body corporate.
(3) The initial capital for the Corporation shall be
monies appropriated by Parliament for that purpose.
23. The headquarters of the Corporation shall be in Headquarters of
the Corporation.
Nairobi.
24. The functions of the Corporation shall be to — Functions of the
Corporation.
(a) engage in mineral prospecting and mining; and
any other related activities;
(b) invest on behalf of the national government;
(c) acquire by agreement or hold interests in any
undertaking, enterprise or project associated with
the exploration, prospecting and mining;
(d) acquire shares or interest in any firm, company or
other body of persons, whether corporate or
unincorporated which is engaged in the mining,
prospecting, refining, grading, producing, cutting,
processing, buying, selling or marketing of
minerals; and
(e) carry on its business, operations and activities
whether as a principal agent, contractor or
otherwise, and either alone or in conjunction with
any other persons, firms or bodies corporate.
25. (1) The Corporation shall be managed by a Board Board of the
corporation
comprising of—
(a) a chairman, appointed by the President;
(b) the Principal Secretary responsible for mining or a
representative ;
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(c) the Principal Secretary responsible for the

National Treasury or a representative;
(d) the Principal Secretary responsible for trade or a
representative; and
(e) three other persons, not being employees of the
corporation.
(2) The Cabinet Secretary shall make Regulations to
prescribe the criteria for the appointment of the members
under paragraphs (a) and (e).
(3) An appointment under subsection (1) (a) and (e)
shall be by name and by notice in the Gazette.
(4) The term of office for members under subsection
(1) (a) and (e) shall be for a period of three years and may
be renewed for one further final term.
(5) A person ceases to be a member, if he or she –
(a) resigns, by giving written notice to the Cabinet
Secretary;
(b) is absent from three consecutive meetings of the
Board without the permission of the chairperson;
(c) is convicted of an offence and sentenced to
imprisonment for a term not exceeding six months
;
(d) is adjudged bankrupt;
(e) is incapacitated from performing his duties as a
member of the Board, by prolonged physical or
mental illness.
(6) A representative member referred to under
subsection (1) (b) (c) and (d) shall, when attending a
meeting, be deemed for all purposes to be a member of the
Board.
26. (1) There shall be a chief executive officer of the Chief Executive
Officer of the
Corporation who shall be competitively recruited by the Corporation.
Corporation.
(2) The chief executive officer shall be—
(a) the accounting officer for the Corporation;
(b) the secretary to the Board; and
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(c) responsible for the day to day administration and
management of the affairs of the Corporation.
(3) A person shall be qualified for appointment as the
chief executive officer, if that person—
(a) holds a relevant degree from a university
recognised in Kenya;
(b) has at least seven years management experience in
a public or private institution;
(c) meets the requirements of Chapter Six of the
Constitution; or
(d) has not been convicted of an offence and is not
serving a term of imprisonment.
(4) The chief executive officer shall be appointed for a
term of three years, which may be renewed for one further
term.
(5) The chief executive officer may be removed from
office in accordance with the terms and conditions set out
in the contract and for violation of any written law or
violation of the terms and conditions of the contract.
27. The Cabinet Secretary shall make Regulations National Mining
Corporation
generally for purpose of the operationalization of the Regulations.
Corporation.
28. (1) The Cabinet Secretary shall facilitate the Establishment of
Minerals and
establishment of a Mineral and Metals Commodity Metal Commodity
Exchange. Exchange

(2) The purpose of the Mineral and Metals

Commodity Exchange shall be to facilitate efficiency and
security in mineral trade transactions.
(3) The Cabinet Secretary may make Regulations to
prescribe the criteria for the establishment and the
functions of a mineral and metals commodity exchange.
29. The Cabinet Secretary shall ensure that – Access to
geoscience
information.
(a) a database of geoscience and information is kept
and maintained; and
(b) is made available to the public on request.
30. (1) There is established a Mineral Rights Board. Mineral Rights
Board.
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(2) The Mineral Rights Board shall comprise of-

(a) a chairperson with demonstrable knowledge and
experience of the minerals and mining sector, who
shall be appointed by the President;
(b) the Principal Secretary responsible for matters
relating to mining ;
(c) the Principal Secretary responsible for the
National Treasury;
(d) one person who has relevant qualifications or
experience in mining, geology, geophysics or
engineering, nominated by the Council of County
Governors;
(e) the Chairperson of the National Land
Commission;
(f) the Director of Mines who shall be the secretary to
the Mineral Rights Board;
(g) the Director of Geological Surveys; and
(h) two persons with professional qualifications and
experience in the mining industry.
(3) The Cabinet Secretary shall appoint the persons
under sub-section (2) (d) and (h) who shall serve a period
of three years.
(4) A person shall be qualified for appointment as a
chairperson or member of the Mineral Rights Board if that
person-
(a) is a citizen of Kenya;
(b) holds a degree from a recognized university, in
geology, geophysics, mining, engineering,
economics, business administration or law ;
(c) has experience in the mining sector of not less
than ten years in the case of the chairperson and
five years in the case of any other member; and
(d) satisfies the requirements of Chapter Six of the
Constitution.
(5) A person shall not be qualified for appointment as
a Chairperson or member of the Mineral Rights Board, if
that person−
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(a) is an undischarged bankrupt;
(b) suffers from physical or mental infirmity which
renders him or her incapable of discharging the
function of the Mineral Rights Board; and
(c) has been convicted of an offence whose term of
imprisonment exceeds six months.
(6) The Chairperson and members of the Mineral
Rights Board appointed under subsection (2) (a) and (h)
shall hold office for a period of three years and may be
eligible for re appointment for one further term.
31. (1) The functions of the Mineral Rights Board Functions of the
Mineral Rights
shall be to advise and give recommendations, in writing, to Board.
the Cabinet Secretary on-
(a) the grant, rejection, retention, renewal, suspension,
revocation, variation, assignment, trading,
tendering, or transfer of Mineral Rights
Agreements;
(b) the areas suitable for small scale and artisanal
mining;
(c) the areas where mining operations may be
excluded and restricted;
(d) the declaration of certain minerals as strategic
minerals;
(e) cessation, suspension, or curtailment of production
in respect of mining licences;
(f) fees, charges and royalties payable for a mineral
right or mineral; and
(g) any matters which under this Act, are required to
be referred to the Mineral Rights Board.
(2) The Mineral Rights Board may for the purpose of
facilitating the performance of its functions establish such
number of committees to advise the Mineral Rights Board
on matters relating to mining and minerals.
PART VI—GENERAL PROVISIONS ON MINERAL
RIGHTS
32. (1) The Cabinet Secretary, on the recommendation Categories of
mineral rights.
of the Mineral Rights Board, may grant, deny or revoke a
mineral right.
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(2) A mineral right may be granted in respect of a

large scale operation or small scale operation.
(3) The following licences and permits may be
granted for a mineral right under this Act to authorise a
mineral right holder to engage in—
(a) large scale operations which shall include —
(i) a reconnaissance licence;
(ii) a prospecting licence;
(iii) a retention licence;
(iv) a mining licence; or
(b) small scale operations, which shall include −
(i) a prospecting permit; or
(ii) a mining permit.
(4) The Cabinet Secretary may on the
recommendation of the Mineral Rights Board, by notice in
the Gazette, designate any other mineral right which may
be granted under this Act.
33. (1) A person shall make an application for a Feedback on
status of
mineral right in the prescribed manner to the Cabinet applications for
Secretary. large scale
operations.
(2) The Cabinet Secretary shall, on the
recommendation of the Mineral Rights Board, approve or
reject an application-
(a) within ninety days in the case of an application for
prospecting licence or reconnaissance licence; or
(b) within one hundred and twenty days in the case of
an application for a mining licence.
(3) Subject to sub-section (2), the Cabinet Secretary
shall notify the Mineral Rights Board of the decision to
approve or reject an application before notifying the
applicant.
(4) Subject to subsection (2), the Cabinet Secretary
shall notify the applicant in writing whether the application
has been accepted or rejected.
(5) Where the application is approved, the applicant
shall by notice in writing accept or reject the offer for grant
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of the mineral right within twenty-one days from the date
of receipt of notification of the approval.
(6) Where the applicant does not notify the Cabinet
Secretary of the acceptance of the offer, the approval of the
application shall lapse after twenty-one days.
(7) An applicant who is aggrieved by the decision of
the Cabinet Secretary may appeal to the High Court within
thirty days.
34. (1) The Cabinet Secretary shall, on receipt of the Mineral right
applications
application, give notice in writing of the pending
application for the grant of a mineral right to –
(a) the land owner or lawful occupier of the land
where the mineral is located;
(b) the community; and
(c) the relevant county Government.
(2) The Cabinet Secretary shall, on receipt of the
application, publish notice of the pending application in a
newspaper of wide circulation at the applicant’s expense.
(3) A notice given under sub-section (1) shall-
(a) state the proposed boundaries of the land in
relation to which an application for a mineral right
is made; and
(b) be published, for twenty one days in the Gazette
and in the offices of the County Government
within which county the land is situated.
(4) Subject to sub-section (3), a person or community
may object to the grant of a licence-
(a) within twenty one days in the case of an
application for a prospecting licence; and
(b) within forty two days in the case of an
applications for a mining licence.
(5) The Cabinet Secretary shall hear and determine
any objection to an application under subsection (4)
through the Minerals Rights Board.
35. (1) A mineral right issued under this Act or any Form of mineral
right.
other written law, shall be evidenced by a licence or permit.
(2) The licence or permit referred to under subsection
(1), shall be in the prescribed form.
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36. (1) The Cabinet Secretary shall not grant a mineral Mineral rights in
excluded and
right which authorises prospecting or mining operations restricted areas.
on—
(a) any land specified by the Cabinet Secretary, by
notice in the Gazette, to be land upon which such
operations are excluded or restricted; or
(b) an area of which is subject to an existing permit or
licence.
(2) The Mineral Rights Board shall, prior to
recommending to the Cabinet Secretary the grant of a
mineral right, require the applicant to seek —
(a) approval of the National Land Commission, in
relation to public land;
(b) the approval of the relevant State agency where
that mineral right is on public land under Article
62 (1)(b) of the Constitution;
(c) the approval of the appropriate Cabinet Secretary
or other authority, where the area in respect of
which a mineral right is sought is dedicated or set
apart as a place of burial, religious significance, as
a public building, or for any other public purpose;
(d) the Governor of the respective county exercising
control where the land is situated within a town,
municipality or trading centre;
(e) the Cabinet Secretary responsible for matters
relating to wildlife conservation and management,
where the land is situated within a marine park, a
national park or a local sanctuary under the
No. 47 of 2013
Wildlife (Conservation and Management) Act;
(f) the Cabinet Secretary responsible for matters
relating to the environment, where the land is
situated within a protected area, a protected
natural environment, or a protected coastal zone
under the Environmental Management and No. 8 of 1999
Coordination Act;
(g) the Director of the Kenya Forest Service, where
the land is situated within a forest area or;
operations on, under or over an area, that has been
No. 7 of 2005.
declared a forest area under the Forests Act;
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(h) any other person who in the opinion of the Cabinet
Secretary would otherwise be affected by the grant
of a mineral right, who may include the owner of
private land or the community in occupation of the
land.
(2) The Cabinet Secretary shall determine any
questions as to whether operations on any land are
excluded under this section.
37. (1) A prospecting and mining rights shall not be Mineral rights on
private land.
granted under this Act with respect to private land without
the express consent of the registered owner, and such
consent shall not be unreasonably withheld.
(2) For the purpose of subsection (1), consent shall be
deemed to be given for the purposes of this Act where the
owner of private land has entered into —
(a) a legally binding arrangement with the applicant
for the prospecting and mining rights or with the
Government, which allows for the conduct of
prospecting or mining operations; or
(b) an agreement with the applicant for the
prospecting and mining rights concerning the
payment of adequate compensation.
(3) Where consent is granted prior to any change in
land ownership, such consent shall continue to be valid for
as long as the prospecting and mining rights subsists.
38. (1) A prospecting and mining rights shall not be Mineral rights on
community land.
granted under this Act or any other written law over
community land without the consent of –
(a) the authority obligated by the law relating to
administration and management of community
land to administer community land; or
(b) the National Land Commission in relation to
community land that is unregistered.
(2) For the purpose of subsection (1), consent shall be
deemed to be given for the purposes of this Act where the
registered owners of community land have entered into —
(a) a legally binding arrangement with the applicant
for the prospecting and mining rights or with the
Government, which allows the conduct of
prospecting or mining operations; or
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(b) an agreement with the applicant for the

prospecting and mining rights concerning the
payment of adequate compensation.
(3) Subject to the law relating to community land,
where consent is granted prior to any change in land
ownership, such consent shall be valid for as long as the
prospecting and mining rights subsists.
(4) The Cabinet Secretary may, by notice in the
Gazette, make regulations for the grant of prospecting and
mining rights over community land.
39. The person responsible for a State organ, agency, Consent or
otherwise.
or authority or a person referred to under sections 36, 37or
38 shall give written consent or notice of refusal to the
applicant within twenty days.
40. (1) The Cabinet Secretary may take steps under Compulsory
acquisition of
the law relating to the compulsory acquisition of land or land for
rights or interests in land, to vest the land or area in prospecting and
mining
question, or rights or interests in such land or area, in the
Government or on behalf of the Government, where the
consent required under sections 36, 37or 38 is─
(a) unreasonably withheld; or
(b) the Cabinet Secretary considers that withholding
of consent is contrary to the national interest.
(2) Subject to sub-section (1), the land or area shall
cease to be land excluded from prospecting or mining.
41. (1) The Cabinet Secretary shall invite parties to Tendering for
mineral rights.
tender in respect of large-scale operations over an area or
areas of land designated under section 14.
(2) The Cabinet Secretary shall in consultation with
the National Treasury and subject to the law relating to
public procurement, make Regulations to provide for
tendering guidelines.
42. (1) A mineral right may be granted subject to such Conditions
attaching to
conditions as may be determined by the Cabinet Secretary mineral rights.
including conditions concerning—
(a) the protection of the mineral interests;
(b) the protection of the environment;
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2016 Mining No. 12

(c) community development;
(d) safety of prospecting and mining operations;
(e) health and safety of persons undertaking those
operations;
(f) the protection of the lawful interests of the holders
of any other mineral right; and
(g) the maximum number of blocks a person or a
company may hold.
(2) Unless otherwise provided for in the mineral right,
the condition subject to which a mineral right is granted
shall continue to have effect and be enforceable after the —
(a) expiration of the term of the mineral right;
(b) surrender of the whole or part of the area specified
in the mineral right; or
(c) revocation of the mineral right in respect of the
whole or part of the area specified in the right.
(3) Subject to sub-section (2), the Cabinet Secretary
may enforce the conditions, as if the conditions were
contained in a contract between the Cabinet Secretary and
the holder of the mineral right and valuable consideration
had been given to the holder for the holder’s compliance
with the condition.
43. (1) A holder of a mineral right shall not— Directions
concerning good
mining practice.
(a) engage in wasteful mining or treatment practices;
or
(b) conduct his operations otherwise than in
accordance with this Act, best industry practice
and any other guidelines as shall be prescribed
from time to time by the Cabinet Secretary.
(2) The Cabinet Secretary or an officer authorised by
the Cabinet Secretary, may issue directions to the holder of
a mineral right requiring the holder to undertake measures
necessary to —
(a) prevent wasteful mining practices; or
(b) ensure that prospecting or mining operations are
carried out in accordance with mining best
practice, the Act or guidelines under this Act.
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(3) The holder of a mineral right shall comply with

any direction given under this Act.
(4) A person who does not comply with the provisions
of this section commits an offence.
44. The holder of a mineral right shall exercise the Mineral rights to
be exercised
rights conferred under the mineral right reasonably, reasonably and
responsibly and in a manner that does not adversely affect responsibly.
the interests of any other holder of a mineral right, or the
owner or occupier of the land over which the mineral right
extends.
45. A holder of a mineral right and any agent Registered
address.
appointed by the holder of a mineral right shall register
with the Principal Secretary an address in Kenya to which
all communications and notices made under this Act to the
mineral right holder or agent may be sent.
46. (1) To ensure skills transfer to and capacity Employment and
training of
building for the citizens, the holder of a mineral right shall Kenyans.
submit to the Cabinet Secretary a detailed programme for
the recruitment and training of citizens of Kenya in a
manner as may be prescribed by the Cabinet Secretary.
(2) The submission and approval of the programme
under subsection (1) shall be a condition for the grant of
mineral right.
(3) The Cabinet Secretary shall make regulations to
provide for the replacement of expatriates, the number of
years such expatriates shall serve and provide for
collaboration and linkage with universities and research
institutions to train citizens.
(4) The Cabinet Secretary shall issue policy guidelines
making further provision to give effect to this section.
47. (1) The holder of a mineral right shall give Preference in
employment.
preference in employment to members of the community
and citizens of Kenya.
(2) In the case of a large scale operation, the holder of
a mineral right shall –
(a) conduct training programmes for the benefit of
employees;
(b) undertake capacity building for the employees;
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2016 Mining No. 12

(c) only engage non-citizen technical experts in
accordance with such local standards for
registration as may be prescribed in the relevant
law;
(d) work towards replacing technical non-citizen
employees with Kenyans, within such reasonable
period as may be prescribed by the Cabinet
Secretary;
(e) provide a linkage with the universities for
purposes of research and environmental
management;
(f) where applicable and necessary facilitate and carry
out social responsible investment for the local
communities; and
(g) implement a community development agreement
as may be prescribed in Regulations.
48. (1) Where a mineral right is for a large scale Government
participation in
mining operation, the State shall acquire ten percent free mining licence.
carried interest in the share capital of the right in respect of
which financial contribution shall not be paid by the State.
(2) The provisions of sub-section (1) shall apply to
large scale mining operations and to mining operations
relating to strategic minerals.
(3) Subsection (1) shall not preclude the State from
any other or further participation in mining and operations
which shall be agreed with the holder at arm’s length.
(4) The Cabinet Secretary shall make regulations to
provide for state participation in mining or prospecting
operations between the Government and the holder of a
mineral right.
49. (1) The Cabinet Secretary shall prescribe the limits Local equity
participation
of capital expenditure for the purpose of this section.
(2) A holder of a mining licence whose planned
capital expenditure exceeds the prescribed amount shall list
at least twenty percent of its equity on a local stock
exchange within three years after commencement of
production.
(3) The holder of a mining licence may apply in
writing to the Cabinet Secretary to execute an equitable
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alternative mechanism that will allow the company to meet

the requirement set in subsection (1), including an
extension of time.
(4) The Cabinet Secretary, may after consultation with
the National Treasury extend the period set out in
subsection (2), for reasons that the market conditions do
not allow for a successful completion of the offering in the
local stock exchange.
50. The holder of a mineral right shall, in the conduct Preference for
local products.
of prospecting, mining, processing, refining and treatment
operations, transport or any other dealings in minerals give
preference to the maximum extent possible—
(a) to materials and products made in Kenya;
(b) to services offered by members of the community
and Kenyan citizens; and
(c) to companies or businesses owned by Kenyan
citizens.
51. (1) The holder of a mineral right shall not assign, Assignments,
transfers,
transfer, mortgage or trade such right or part thereof mortgage and
without the consent of the Cabinet Secretary on trade of mineral
rights.
recommendation of the Mineral Rights Board.
(2) The Cabinet Secretary shall not unreasonably
withhold consent to assign, transfer, mortgage or trade a
mineral right and shall inform an applicant of the decision
within thirty days of receipt of an application to assign,
transfer, mortgage or trade a mineral right.
(3) The Cabinet Secretary shall not consent to a
proposed assignment, transfer, mortgage or trade of a
mineral right to a person or a body corporate which is not
eligible for the grant of a mineral right under this Act.
(4) Prior to assignment, transfer, mortgage or trade of
a mineral right, and within thirty days from the date of
receiving consent, the holder of such right shall notify the
Kenya Revenue Authority of the transfer of an interest in a
mineral right.
(5) The Cabinet Secretary shall not register the interest
of the transferee until the transferor produces evidence of
compliance with the relevant tax provisions.
(6) Subject to this Act, the holder of a mineral right
shall notify the Cabinet Secretary of any significant
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proposed change in the ownership or control of the mining
company with any single interest exceeding twenty-five
percent interest in the licence.
(7) A proposed change shall not take effect until it has
been approved by the Cabinet Secretary.
(8) The Cabinet Secretary shall not refuse to grant
approval, except for valid reasons.
(9) The transferee as well as the transferor of a
mineral right shall be liable for the payment of all rent and
compensation which may have accrued, and the observance
of all obligations imposed by the licence up to the date of
the transfer in respect of the licence or part thereof so
transferred, but the transferor shall not be liable for the
payment of any future rents and compensation or the
compliance with any obligations so imposed as aforesaid in
regard to the licence or part thereof so transferred after the
date of the transfer.
52. The Mineral Rights Board shall prepare and Preparation of
reports
submit a report on each application for a mineral right to
the Cabinet Secretary.
53. (1) The holder of a mineral right shall, within Annual financial
reports.
three months following the end of each financial year,
furnish the Cabinet Secretary and the Kenya Revenue
Authority with a copy of audited annual financial
statements, in accordance with International Accounting
Standards.
(2) The Cabinet Secretary shall prescribe the form and
contents of the annual financial statements.
54. (1) The holder of a mineral right, or an applicant Power to require
additional
for the grant or renewal of a mineral right, shall provide information.
such additional information to the Cabinet Secretary as
may be reasonably required for consideration of the
application.
(2) The Cabinet Secretary shall request for
information by written notice to the holder of the mineral
right.
(3) Where the Cabinet Secretary requires additional
information to be provided under subsection (1), an
application for the grant or renewal of a mineral right shall
be deemed to be incomplete until the mineral right holder
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furnishes the additional information to the Cabinet

Secretary.
55. (1) The Cabinet Secretary shall submit an annual Report by the
Cabinet Secretary.
report, to Cabinet, of all mineral rights granted or rejected
under this Act or any other written law.
(2) The report submitted under subsection (1) shall
indicate the justification for granting or rejecting a mineral
right under this Act or any other written law.
56. Applications for a mineral right shall be Priority of
applications.
considered, processed and determined on a first-come first-
served basis.
57. (1) The Cabinet Secretary shall extend the term of Treatment of
applications.
a mineral right that has expired by effluxion of time—
(a) where the mineral right is for a prospecting licence
and the holder is awaiting a decision on an
application made in accordance with this Act for –
(i) the renewal of the licence; or
(ii) a retention licence or a mining licence that
applies to the whole, or a part, of the area
covered by the prospecting licence.
(b) where the mineral right is for a retention licence
and the holder is awaiting a decision on an
application made in accordance with this Act for –
(i) the renewal of the licence; or
(ii) a mining licence; or
(c) where the mineral right is for a mining licence or a
mining permit and the holder is awaiting a
decision on an application for renewal of the
mineral right made in accordance with this Act.
(2) An extension of the term of a mineral right in
accordance with subsection (1) shall end immediately if an
application for any of the mineral rights mentioned in this
section is surrendered or is refused.
58. The Cabinet Secretary shall only grant or renew a Conditions for
grant of mineral
mineral right for a large scale operation where the applicant rights for large
has complied with the provisions of this Act. scale operations.
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59. An application for the grant or renewal of a Withdrawal of an
application.
mineral right may be withdrawn by the applicant at any
time before the applicant receives information of the
approval or rejection of the application.
Large scale operations
Reconnaissance Licence
60. This Part shall only apply to reconnaissance Application of
Part
licence holders.
61. (1) An application for reconnaissance licence shall Application for a
reconnaissance
be submitted to the Cabinet Secretary in the prescribed licence.
form with the prescribed fee.
(2) An applicant for a reconnaissance licence shall
provide the following information to the Cabinet
Secretary─
(a) the area in respect in which the reconnaissance
licence is sought;
(b) the proposed programme for the reconnaissance
operations to be carried out;
(c) details of the technical expertise and financial
resources to be used in the conduct of the
reconnaissance operations;
(d) a plan outlining the proposals for procurement of
local goods and services by the applicant; and
(e) any other information required by the Cabinet
Secretary as may be prescribed by Regulations.
(3) The Cabinet Secretary, on the recommendation of
the Mineral Rights Board shall grant a reconnaissance
licence, if─
(a) the size area of land on which the reconnaissance
licence is sought is reasonable and in line with the
programme of operations proposed by the
applicant;
(b) the applicant has adequate financial resources,
technical competence and mining industry
experience to carry on the proposed programme of
reconnaissance operations;
(c) the local product plan by the applicant with
respect to the procurement of locally available
goods and services is acceptable; and
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(d) the local employment plan by the applicant with

respect to employment and training of Kenyan
citizens is acceptable.
62. (1) The maximum area covered by a Maximum area of
reconnaissance
reconnaissance licence shall be a block or any number of licence
blocks not exceeding five thousand contiguous blocks each
having a side in common with at least one block the subject
of the application.
(2) Notwithstanding the number of blocks that may be
granted under sub-section (1), nothing in this Act shall
prevent the government from conducting any
reconnaissance over the total land offshore area of Kenya
or such lesser area as the Cabinet Secretary may approve.
(3) A person or company may hold only one
reconnaissance licence or such number of licences as the
Cabinet Secretary shall prescribe in Regulations.
63. The term of a reconnaissance licence shall not Term of a
reconnaissance
exceed two years and is not renewable. licence

64. (1) Any existing mineral right area, or an area Restrictions on

grant of
closed to prospecting and mining falling within the reconnaissance
reconnaissance licence area, shall be deemed to be licence
excluded from the application.
(2) Where any land which is the subject of a
reconnaissance licence becomes the subject of an exclusive
Mineral Right, or is subsequently closed to prospecting or
mining, it ceases to be subject of the reconnaissance
licence.
(3) Where it is required to fly over any land for the
purpose of the exercise of any right under a reconnaissance
licence nothing shall prevent any such flight from being
undertaken anywhere within the boundaries of the
reconnaissance licence area whether or not any areas are
excluded by virtue of sub-sections (1) and (2).
(4) Any results obtained from any airborne survey
shall be subject to copyright laws of Kenya with regards to
disclosure as prescribed in Regulations.
65. (1) The holder of a reconnaissance licence shall Rights conferred
by a
enjoy non-exclusive rights to carry out reconnaissance for reconnaissance
the minerals in the area covered by the licence in licence
accordance with the provisions of this Act.
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(2) The holder of a reconnaissance licence may, in
exercise of the rights conferred under sub-section (1) ─
(a) enter on or fly over the reconnaissance area to
carry out approved reconnaissance operations;
(b) take and remove specimens and samples from the
reconnaissance area not exceeding such limit as is
reasonably required for reconnaissance purposes;
(c) take timber and water from any lake or
watercourse for the purposes of reconnaissance
operations;
(d) erect equipment, plant and buildings necessary to
carry out the reconnaissance operations; and
(e) remove on or before the termination of the
reconnaissance operations, any camps, temporary
buildings or installations which the holder may
have erected in the licence area.
(3) A person appointed by the holder of a
reconnaissance licence to act as an agent of the holder may
exercise the rights of the holder of the licence subject to
any limitations on the power of the agent contained in the
instrument of appointment.
66. Any mineral acquired in the course of Minerals obtained
under
reconnaissance operations under reconnaissance licence reconnaissance
shall be the property of the National Government and shall licence
not be disposed of or removed from Kenya without the
written consent of the Cabinet Secretary.
67. (1) The holder of a valid reconnaissance licence Obligations under
reconnaissance
shall− licence
(a) commence reconnaissance within three months of
grant of the licence;
(b) carry out reconnaissance in accordance with the
approved programme of reconnaissance
operations;
(c) expend on reconnaissance in accordance with the
programme of reconnaissance, not less than such
amount as may be specified in the reconnaissance
licence;
(d) not engage in drilling, excavation or other
subsurface exploration techniques;
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(e) inform and consult on an ongoing basis with the

national and county government authorities and
communities about the reconnaissance operations
that require physical entry onto the land within
their jurisdiction;
(f) not enter land that is excluded from the
reconnaissance licence;
(g) compensate users of land for damage to land and
property resulting from reconnaissance operations
in the licence area;
(h) not remove any mineral from reconnaissance are
except for the purpose of having such mineral
analysed, valued or tested;
(i) ensure that the amount of work and amount of
expenditure as specified in the approved
programme or reconnaissance operations is
actually expended in the course of undertaking
reconnaissance operations within the mandated
deadlines stipulated in the plan and reported in the
reports that may be required by the relevant
Regulations;
(j) notify the Cabinet Secretary without any
unreasonable delay of the discovery of any
mineral deposit of potential commercial use;
(k) notify the Cabinet Secretary of any archaeological
discovery;
(l) comply with the conditions of the licence and any
directions issued by the Cabinet Secretary or
authorised officer in accordance with the Act;
(m) submit to the Cabinet Secretary geological and
financial reports and such other information
relating to reconnaissance operations as may be
prescribed;
(n) carry out reconnaissance in accordance with the
international good practice standards and any
guidelines as may be prescribed;
(o) remove within sixty days of the expiration of the
reconnaissance licence , any camps, temporary
buildings or machinery erected or installed by the
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holder and repair or otherwise make good any
damage to the surface of the ground occasioned by
such removal to the satisfaction of the Cabinet
Secretary or a duly appointed officer.
(2) Where the expenditure specified in the approved
programme of reconnaissance operations in sub-section (1)
(c) is not expended during the term of the reconnaissance
licence, any shortfall shall be paid to the Ministry of
Mining in a manner as prescribed by the Cabinet Secretary.
(3) A reconnaissance licence is subject to an area-
based annual charge as may be prescribed.
(4) A reconnaissance licence is not transferable.
68. (1) A reconnaissance licence issued in accordance Form of
reconnaissance
with this Act shall include− licence
(a) an approved programme of reconnaissance
including an expenditure commitment;
(b) an approved plan for the procurement of local
goods and services;
(c) an approved plan to employ and train citizens of
Kenya; and
(d) any other conditions applying to the licence.
69. (1) The holder of reconnaissance licence shall Record- keeping
and reporting
keep complete and accurate records of the reconnaissance requirements
operations at the registered office of the holder in the
prescribed manner.
(2) The records of a reconnaissance operations shall
include−
(a) details of all minerals discovered;
(b) the results of geological, geochemical,
geophysical or airborne surveys obtained and
compiled by the holder;
(c) financial statements and books of accounts as the
Cabinet Secretary may by notice require; and
(d) any other reports or information as may be
prescribed or otherwise determined by the Cabinet
Secretary.
(3) The holder of a reconnaissance licence shall
submit six-monthly and annual reports on reconnaissance
operations in the form prescribed in guidelines
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70. (1) The holder of a reconnaissance licence may Amendment of

programme for
make an application in the prescribed form to the Cabinet reconnaissance.
Secretary for approval to amend the approved programme
for reconnaissance.
71. (1) The holder of a reconnaissance licence may, Right to surrender
reconnaissance
upon application in the prescribed form and manner and licence.
upon meeting prescribed conditions, surrender the licence.
(2) Upon surrender, the holder of a reconnaissance
licence shall submit all records, reports, results, data and
interpretation arising from the reconnaissance operations to
the Cabinet Secretary which shall become the property of
the State, and the holder shall not trade or otherwise
divulge information to any third party without the express
permission of the Cabinet Secretary.
Prospecting Licence
72. (1) A person may apply for a prospecting licence Application for
prospecting
to the Cabinet Secretary in the prescribed form and licence.
accompanied by the prescribed fee.
(2) An applicant for a prospecting licence shall
provide the following information to the Cabinet Secretary
–
(a) the mineral or minerals in respect of which the
licence is sought;
(b) the area in respect of which the licence is sought;
(c) particulars of the proposed programme for
prospecting operations to be carried out under the
licence;
(d) details of the experience and financial resources
available to the applicant to be able to conduct the
prospecting operations;
(e) a plan giving particulars of the proposals by the
applicant with respect to the employment and
training of Kenyan citizens; and
(f) a plan giving particulars of the proposals by the
applicant with respect to the procurement of local
goods and services.
(3) The Cabinet Secretary shall not grant a
prospecting licence unless he is satisfied that—
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(a) the size area of land over which the prospecting
licence is sought is reasonable having regard to the
proposed programme of prospecting operations by
the applicant;
(b) the applicant has adequate financial resources,
technical competence and mining industry
experience to carry on the proposed programme of
prospecting operations;
(c) the applicant has submitted an environmental
rehabilitation and restoration plan;
(d) the local product plan by the applicant with
respect to the procurement of locally available
goods and services are acceptable; and
(e) the employment plan by the applicant with respect
to employment and training of Kenyan citizens are
acceptable.
(4) The Cabinet Secretary shall prescribe the items
required to be submitted by the applicant where an
application for the prospecting licence is approved under
this Act.
73. The area covered by a prospecting licence shall be Maximum area of
prospecting
a block or a number not exceeding one thousand five licence.
hundred contiguous blocks each having a side in common
with at least one other block the subject of the application.
74. The term of a prospecting licence shall be Term of
prospecting
specified in the licence, and in any case shall not exceed licence.
three years.
75. (1) The holder of a prospecting licence shall enjoy Rights conferred
by prospecting
exclusive rights to carry out prospecting operations in the licence.
area covered by the licence in accordance with the
provisions of this Act.
(2) The holder of a prospecting licence may, in the
exercise of the rights conferred under subsection (1) –
(a) demarcate the areas that fall within the licence
area;
(b) enter the area of land specified in the licence and
take all reasonable measures on or under the
surface of the land to carry out prospecting
operations; and
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(c) erect equipment, plant and buildings necessary to

carry out the prospecting operations.
(3) A person appointed by the holder of a prospecting
licence to act as an agent of the holder may exercise the
rights of the holder of the licence under the licence, subject
to any limitations on the powers of the agent contained in
the instrument of appointment.
(4) In the event of change of land rights, a prospecting
licence holder shall maintain mineral rights over the licence
area unless fully compensated by the new land rights
holder.
76. (1) Any mineral acquired in the course of Minerals obtained
under prospecting
prospecting operations under a prospecting licence − licence

(a) is the property of the National Government; and

(b) shall not be disposed of or removed from Kenya
without the written consent of the Cabinet
Secretary.
(2) Subsection (1) (b) shall not apply to the prescribed
quantity required for sampling, assaying, analysis or other
similar examination.
77. (1) The holder of a prospecting licence shall— Obligations under
prospecting
licence.
(a) commence prospecting operations within three
months of the grant of the prospecting licence or a
period specified in the approved programme for
prospecting operation;
(b) undertake prospecting operations in accordance
with the approved programme of prospecting
operations;
(c) ensure that the amount of work and expenditure
specified in the approved programme of
prospecting operations is actually expended in the
course of undertaking prospecting operations
within the deadlines stipulated;
(d) comply with the terms and conditions of the
environmental rehabilitation and restoration plan;
(e) without any unreasonable delay, notify the
Cabinet Secretary of the discovery of any mineral
deposit of potential commercial value including
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mineral deposits for which the holder of the
licence was not authorised to prospect;
(f) notify the Cabinet Secretary of any archaeological
discovery;
(g) comply with the conditions of the licence or any
existing and applicable minerals agreement, and
any directions issued by the Cabinet Secretary or
an authorized officer in accordance with this Act;
(h) submit to the Cabinet Secretary geological and
financial reports and such other information
relating to prospecting operations as may be
prescribed either quarterly or at such other
intervals as may be determined by the Cabinet
Secretary; and
(i) carry out prospecting activities in accordance with
the international best practice standards and
guidelines as may be prescribed.
(2) Where the expenditure specified in the approved
programme for prospecting operations in sub-section (1)
(c) is not expended during the term of a prospecting
licence, it shall be paid to the ministry in a manner as may
be prescribed by Regulations made under this Act.
78. A prospecting licence issued in accordance with Form of
prospecting
this Act shall include the following information in addition licence.
to the information referred to in section 72–
(a) an approved programme for prospecting
operations, including expenditure estimates;
(b) an approved plan for the procurement of local
goods and services;
(c) an approved plan to employ and train citizens of
Kenya; and
(d) an approved environmental impact assessment
report, a social heritage impact assessment and
environmental management plan, where required.
79. (1) The holder of a prospecting licence shall keep Record-keeping
and reporting
complete and accurate records of the prospecting requirements.
operations at the registered office of the holder in the
manner prescribed.
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(2) For the purpose of sub-section (1), records of the

prospecting operations include –
(a) details of all minerals discovered;
(b) the results of geochemical or geophysical analysis
obtained and compiled by the holder;
(c) financial statements and books of accounts as the
Cabinet Secretary may by notice require; and
(d) any other reports or information as may be
prescribed or otherwise determined by the Cabinet
Secretary.
80. The holder of a prospecting licence may make a Amendment of
programme for
written application in the prescribed form to the Cabinet prospecting
Secretary for approval to amend the approved programme operations.
for prospecting operations.
81. (1) The holder of a prospecting licence may apply Renewal of
prospecting
to the Cabinet Secretary for the renewal of the prospecting licence.
licence in respect of an area of land that forms part of the
prospecting area.
(2) An application under this section shall be made in
the prescribed form and shall be accompanied by the
prescribed fee.
(3) An application for the renewal of a prospecting
licence shall be made three months before the expiry of the
term of the current prospecting licence.
(4) The Cabinet Secretary, on the recommendation of
the Mineral Rights Board, shall respond to an application
for the renewal of a prospecting licence within sixty days
of receipt of the application.
(5) Where an application has been made and the
Cabinet Secretary fails to respond before the expiry of the
prospecting licence, the applicant may continue the
prospecting operations until the application is determined.
82. (1) An application for the renewal of a prospecting Application for
renewal of
licence shall be accompanied by – prospecting
licence.
(a) a report on the progress of the prospecting
operations;
(b) a statement of the costs incurred in the course of
undertaking prospecting operations;
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(c) particulars of the programme for prospecting
operations that the applicant proposes to carry out
during the renewal period, including an estimate
of expenditure;
(d) a plan showing the area of land in respect of which
renewal is sought; and
(e) proof of submission and approval of
environmental audit reports relating to the initial
application and the application for renewal, to the
National Environmental Management Authority.
(2) Where an applicant does not provide a plan in
accordance with subsection (1) (d), the Cabinet Secretary
shall determine the area in respect of which renewal shall
be granted.
(3) The Cabinet Secretary shall only renew a
prospecting licence, where the applicant demonstrates
compliance with this Act.
83. (1) The term for renewal of a prospecting licence Term for renewal.

shall be specified in the licence and in any case shall not

exceed three years.
(2) A prospecting licence shall not be renewed for
more than two times after the initial grant of the licence.
84. (1) Unless the Cabinet Secretary agrees that a Relinquishment,
consolidation etc.
smaller area may be relinquished, the size of the area
specified in a prospecting licence shall be reduced upon
renewal –
(a) by not less than one half the number of blocks, but
a minimum of one hundred and twenty five blocks
shall subject to the licence; or
(b) where the blocks form not more than three discrete
areas, each consisting of a single block or a
number of contiguous blocks each having a side in
common with at least one other block in that area.
(2) Where a person or company holds two or more
contiguous prospecting licences of the same term and in
respect of the same mineral or minerals, the Cabinet
Secretary may, for the purposes of relinquishment of part
or any of the areas thereof, declare the areas covered by
such licence to be one area subject to a single prospecting
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licence and provide written notification to the holder of the

prospecting licence.
(3) A person shall not be paid compensation in respect
of the relinquishment of land provided for under this Act or
where the land formed part of the prospecting area under a
prospecting licence.
Retention Licence
85. (1) This section applies where – Eligibility for
retention licence.
(a) the holder of a prospecting licence has identified a
mineral deposit that is of potential commercial
significance within the prospecting area; and
(b) the deposit cannot be developed immediately due
to temporary adverse market conditions, economic
factors, technical constraints, or other factors
beyond the reasonable control of the holder of the
licence.
(2) Where the circumstances described in subsection
(1) exist, the holder of a prospecting licence may apply for
a retention licence.
86. (1) The holder of a prospecting licence may apply Application for
retention licence.
for a retention licence by making an application to the
Cabinet Secretary in the prescribed form and accompanied
by the prescribed fee.
(2) An applicant for a retention licence shall provide
information to the Cabinet Secretary in the prescribed form
in accordance with subsection (1) –
(a) the mineral or mineral deposit in respect of which
the licence is sought;
(b) a full study and assessment by an independent
expert on—
(i) the prospects for recovery;
(ii) the commercial significance of the mineral
deposit;
(iii) the relevant adverse market conditions,
economic factors, technical constraints or any
other factors that may make it impossible to
develop the mineral deposit immediately;
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(c) the area in respect of which the licence is sought;
(d) particulars of any proposed prospecting operations
to be carried out under the licence;
(e) details of the experience and financial resources
available to the applicant for the development of
the mineral when the relevant adverse market
conditions, economic factors, technical constraints
or other factors which make it impossible to
develop the mineral cease to exist;
(f) a plan giving particulars of the applicant’s
proposals with respect to the employment and
training of Kenyan citizens; and
(g) a plan giving particulars of the applicant’s
proposals with respect to the procurement of local
goods and services.
(3) The Cabinet Secretary, on the recommendation of
the Mineral Rights Board, shall only grant a retention
licence, if –
(a) the application is reasonable having regard to the
study and assessment referred to in sub-section
(2)(b);
(b) the applicant has adequate financial resources,
technical competence and mining industry
experience to develop the mineral deposit once the
relevant adverse market conditions, economic
factors, technical constraints or other factors that
make it impossible to develop the mineral deposit
cease to exist;
(c) the applicant has obtained an environmental and
social impact assessment licence and an
environmental management plan which relates to
the operations to be carried out under the retention
licence where required under the Environment
Management and Coordination Act;
(d) the applicant’s proposal with respect to the
procurement of local goods and services is
acceptable; and
(e) the applicant’s proposal with respect to
employment and training of Kenyan citizens is
acceptable.
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(4) The Cabinet Secretary may require the applicant

to provide any additional information which may be
reasonably required regarding the applicant’s proposal for
the retention and development of the mineral deposits
covered by the application.
(5) Where an applicant does not respond to a request
for additional information in accordance with subsection
(4), the Cabinet Secretary shall reject the application.
87. (1) The term of a retention licence shall be Term of retention
licence.
specified in the licence, and shall not exceed two years.
(2) The holder of a retention licence may, at any time
but not later than three months before expiration of the
initial term of the licence, apply to the Cabinet Secretary
for a renewal of the retention licence in the prescribed
manner.
(3) The Cabinet Secretary, on the recommendation of
the Mineral Rights Board shall grant a renewal of the term
of the licence for a further period not exceeding two years.
88. (1) The holder of a retention licence shall enjoy Rights conferred
by retention
the exclusive right to - licence.

(a) conduct prospecting operations in the retention

area; and
(b) apply for a mining licence in respect of all or a
part of the retention area.
(2) The holder of a retention licence may, in the
exercise of the rights conferred under subsection (1) -
(a) demarcate areas that fall within the licence area;
(b) enter the area of land specified in the licence and
take all reasonable measures on or under the
surface of the land to carry out prospecting
operations; and
(c) erect equipment, plant and buildings necessary to
carry out the prospecting operations.
(3) A person appointed by the holder of a retention
licence to act as an agent of the holder may exercise the
rights of the holder of the licence under the licence, subject
to any limitations on the powers of the agent contained in
the instrument of appointment.
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89. The holder of a retention licence shall – Obligations under
retention licence.
(a) demarcate the licence area in such manner as may
be prescribed ;
(b) back fill or otherwise make safe in the prescribed
manner or as otherwise directed by the Cabinet
Secretary any excavations made during the course
of prospecting operations;
(c) permanently preserve, or otherwise make safe in
the prescribed manner or as otherwise directed by
the Cabinet Secretary, any boreholes made during
the course of prospecting operations;
(d) comply with the terms and conditions of the
environmental restoration, rehabilitation and
heritage plan;
(e) remove any equipment, plant or building erected
for prospecting operations in the area specified in
the licence;
(f) carry out such studies and assessments of the
prospects of the commercial exploitation of the
mineral deposits concerned as may reasonably be
required by the Cabinet Secretary ; and
(g) comply with the conditions of the licence or any
existing and applicable minerals agreement, and
any directions issued by the Cabinet Secretary or
an authorized officer in accordance with this Act.
90. (1) The holder of a retention licence shall keep at Record-keeping
and reporting
the registered office, complete and accurate records of requirements.
prospecting operations relating to the licence in the manner
prescribed.
(2) The records to be kept by the holder of a retention
licence for the purposes of subsection (1) shall include –
(a) details of all minerals discovered;
(b) results of geochemical or geophysical analysis
obtained and compiled by the licence holder;
(c) results of studies, surveys, tests and other work
undertaken in the area covered by the Retention
Licence, including any interpretation and
assessment of those tests and surveys;
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(d) financial statements and such other books of

account as the Cabinet Secretary may prescribe;
and
(e) such other reports and information as may be
prescribed or otherwise determined by the Cabinet
Secretary.
91. (1) The Cabinet Secretary may issue written notice Compulsion to
apply for mining
to the holder of the retention licence requiring the holder to licence by
apply for a mining licence in respect of the minerals retention licence
holder.
specified in the notice before the end of the period
specified in the licence.
(2) The Cabinet Secretary shall issue a notice under
sub-section (1) if he is satisfied, based on an independent
report, that it has become technically possible and
commercially viable for a mineral deposit that is the
subject of a retention licence to be mined during the term
of the licence.
(3) Where the holder of a retention licence fails to
comply with a notice served in accordance with subsection
(1), the Cabinet Secretary shall give such holder thirty
days’ notice to show cause as to why the retention licence
should not be revoked.
(4) Where no response is received within the period
specified in subsection (3), the Cabinet Secretary shall
revoke the retention licence.
(5) The holder of a retention licence shall not be
entitled to compensation, if a retention licence is revoked
under this section.
Artisanal Miners Operations
92. (1) This part shall only apply to artisanal miners. Application of
Part

93. (1) The Cabinet Secretary may establish a county Establishment of

offices in the
office of the Ministry. County.

(2) The Cabinet Secretary shall designate a

representative of the Director of Mines who shall be the
head of the county office and who shall report to the
Director of Mines.
(3) The functions of the officer shall be to-
(a) grant, renew and revoke artisanal mining permits;
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(b) compile a register of the artisanal miners and
specifying particulars that may be determined by
the Cabinet Secretary;
(c) supervise and monitor the operation and activities
of artisanal miners;
(d) advise and provide training facilities and
assistance necessary for effective and efficient
artisanal mining operations;
(e) submit to the Director of Mines, reports or other
documents and information on artisanal mining
activities within the county as prescribed in
regulation;
(f) facilitate the formation of artisanal association
groups or cooperatives; and
(g) promote fair trade of artisanal miners.
94. (1) There shall be established in every county an Artisanal Mining
Committee.
Artisanal Mining Committee.
(2) An Artisanal Mining Committee shall comprise
of-
(a) a representative of the Governor ,who shall be the
chairperson of the committee;
(b) the representative of the Director of Mines who
shall be the secretary;
(c) three persons not being public officers and elected
by the association of artisanal miners in the
county;
(d) a representative of the inspectorate division of the
Ministry;
(e) a representative of the National Environment
Management Authority; and
(f) a representative of the county land board.
(3) The Committee shall advise the representative of
the Director of Mines in the granting, renewal or
revocation of artisanal mining permits.
(4) The members of the Committee shall hold office
for a period and on such terms and conditions as may be
determined in the instrument of appointment.
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95. (1) A permit for an artisanal mining operation Qualification of

applicants for an
shall be granted to a person who – Artisanal Mining
Permit
(a) is a citizen of Kenya;
(b) has attained the age of majority; and
(c) may be a member of an artisanal mining
cooperative association or group.
(2) Where any other mineral right has been granted
over a parcel of land an artisanal permit shall not be
granted.
(3) A person shall not engage in artisanal mining
operations unless the person has been granted an artisanal
mining permit under this Act.
(4) A person may apply for an artisanal mining permit
to the representative of the Director of Mines in the area of
operation in the prescribed form.
(5) An application for an artisanal mining permit shall
contain the following information–
(a) the name, nationality and address of the applicant;
(b) the name of the co-operative, association or group,
place of registration and the registered office
address;
(c) the minerals in respect of which the permit is
sought;
(d) description of the area in respect of which the
permit is sought; and
(e) the land owner’s consent has been obtained where
the land is not designated as an artisanal or small
scale mining area.
(6) The representative of the Director of Mines shall
notify the applicant of the grant or refusal of the
application within the prescribed time.
(7) A permit granted by the representative of the
Director of Mines shall be for the specified mineral in the
application and shall be subject to conditions specified in
the permit.
96. (1) A permit granted under this Act shall be valid Duration of a
permit
for a period three years from the date of issue and shall be
renewable upon application for one more term.
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(2) A holder of an artisanal mining permit may apply
to convert it to a small scale permit in the manner as may
be prescribed in Regulations.
97. (1) The representative of the Director of Mines Revocation of a
permit
may revoke a permit granted where the holder of the
permit–
(a) contravenes the terms and conditions of the
permit; or
(b) is convicted of any offence relating to smuggling
or illegal sale or dealing in minerals.
98 (1). A holder of an artisanal permit may mine and Operations of
Artisanal Miners
produce minerals in an effective and efficient method.
(2) The holder of an artisanal permit shall observe
good mining practices, health and safety rules and pay due
regard to the protection of the environment.
(3) The Cabinet Secretary shall prescribe Regulations
for the protection, health and safety of artisanal mining
operations.
99. Where a permit is granted in a designated area to a Compensation of
use of land
person other than the owner of the land, the holder shall
compensate the owner of the land in the prescribed manner.
100. The sale of minerals won by an artisanal miner Sale of minerals

shall be subject to the Regulations prescribed by the

Cabinet Secretary.
Mining Licence
101. (1) A person or company may apply for a mining Application for
mining licence.
licence in the prescribed form and accompanied by the
prescribed fee.
(2) An application for a mining licence under
subsection (1) shall be in the prescribed form and
addressed to the Cabinet Secretary and shall provide the
following information –
(a) the mineral or minerals in respect of which the
licence is sought;
(b) the area in respect of which the licence is sought;
(c) a proposed programme of mining operations that
outlines the mine forecasts and operation plans,
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including the options for minerals beneficiation in

the prescribed form;
(d) a feasibility study;
(e) a statement regarding the mineral or minerals in
the area of land over which the licence is sought,
including details of all known minerals as well as
probable mineral reserves;
(f) a statement of the financial and technical
resources available to the applicant to carry out the
proposed mining operations and to comply with
the conditions of the licence;
(g) a plan giving particulars of the applicant’s
proposals with respect to the employment and
training of Kenyan citizens;
(h) a plan giving particulars of the applicant’s
proposals with respect to the procurement of local
goods and services;
(i) proof of submission and approval of an
environmental and social impact assessment report
and environmental management plan for the term
of the mining licence to the National Environment
Management Authority; and
(j) a plan giving particulars of the applicant’s
proposals with respect to social responsible
investments for the local community
102. The Cabinet Secretary shall not grant a mining Restrictions in
respect of mining
licence in respect of land which is the subject of a licences.
prospecting licence, reconnaissance licence, a retention
licence or a mining licence unless –
(a) the applicant is the holder of that licence; or
(b) the applicant, with the consent of the licence
holder, is applying for a licence that would permit
the applicant to work a mine dump or mine waste
and tailings on the land but not to undertake any
other mining operation on the land.
103. The Cabinet Secretary, on recommendation of Consideration of
applications
the Mineral Rights Board, may grant a mining licence if
satisfied that –
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(a) the area of land over which the mining licence is
sought is reasonable having regard to the
applicant’s proposed programme of mining
operations, but in any case not more than three
hundred contiguous blocks;
(b) the applicant has adequate financial resources,
technical competence and mining industry
experience to carry out the proposed programme
of mining operations;
(c) the applicant has obtained an approved
environmental impact assessment licence, a social
heritage assessment and environmental
management plan in respect of the applicant’s
proposed mining operations;
(d) the applicant’s proposal with respect to the
procurement of local goods and services is
acceptable;
(e) the applicant’s proposal with respect to
employment and training of Kenyan citizens is
acceptable;
(f) the project is feasible based on the feasibility
study; and
(g) the applicant’s proposal with respect to engaging
in community investments is socially responsible.
104. The Cabinet Secretary shall grant a mining Application by
holder of
licence to an applicant where – prospecting
licence.
(a) the applicant is the holder of a prospecting licence
and has given notice to the Cabinet Secretary of
the discovery of minerals in or on terrestrial or
marine areas which are the subject of the
prospecting licence; and
(b) the applicant has satisfied the requirements
prescribed by this Act for the grant of a mining
licence.
105. The Cabinet Secretary shall not reject an Notice of refusal

application for a mining licence unless –

(a) he has given the applicant a notice of the intention
to reject the application stating the grounds for
rejecting the application;
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(b) he has specified in the notice a period within

which the applicant may make appropriate
proposals to remedy the grounds stated in the
notice of intention to reject the application; and
(c) the applicant has failed, within the specified
period, to make appropriate proposals.
106. A mining licence shall contain the following Form of mining
licence.
information in addition to any other information provided
for under this Act–
(a) the mineral in respect of which the licence is
issued;
(b) name and address of the holder;
(c) date of grant and expiry of the licence;
(d) the area in respect of which the licence issued;
(e) the approved programme for mining operations;
(f) the approved plan for the procurement of local
goods and services;
(g) conditions subject to which the licence is issued;
(h) the approved plan to employ and train citizens of
Kenya;
(i) details of the approved environmental impact
assessment report, social heritage impact
assessment and environmental management plan;
and
(j) such other information as the Cabinet Secretary
may consider necessary.
107. The term of a mining licence shall not exceed – Term of mining
licence.
(a) twenty five years; or
(b) the forecast life of the mine,
whichever is shorter, and shall be specified in the
licence.
108. (1) The holder of a mining licence shall enjoy the Rights conferred
by mining
exclusive right to carry out mining operations in respect of licence.
the mineral or mineral deposit specified in the licence
within the area specified subject to the provisions of this
Act and the terms and conditions set out in the licence.
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(2) In the exercise of the rights referred to in
subsection (1), the holder of a mining licence may –
(a) enter the area of land specified in the licence and
take all reasonable measures on or under the
surface of the land to carry out mining operations;
(b) erect equipment, plant and buildings necessary to
mine the specified mineral and to transport, dress
or treat the minerals so recovered; or
(c) dispose of any mineral recovered subject to the
payment of the required fees and royalties.
(3) A person appointed by the holder of a mining
licence to act as an agent of the holder may exercise the
rights of the licensee under the licence, subject to any
limitations on the powers of the agent contained in the
instrument of appointment.
109. The holder of a mining licence shall— Obligations under
mining licence.
(a) commence mining operations within six months of
the grant of the licence, or as may be specified in
the approved program for mining operations or in
any relevant minerals agreement;
(b) conduct mining operations in compliance with the
approved programme for mining operations;
(c) comply with the terms and conditions of the
approved environmental impact assessment
licence , social heritage assessment and
environmental management plan relating to the
operations to be carried out under the mining
licence;
(d) demarcate and keep demarcated the mining area in
the prescribed manner;
(e) comply with the conditions of the licence, any
applicable mineral agreement and any directions
issued by the Cabinet Secretary or an authorized
officer in accordance with this Act;
(f) submit to the Cabinet Secretary up to date
quarterly returns of mine development and mineral
production;
(g) stack or dump any mineral or waste products in
the manner provided for in the licence or as
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otherwise prescribed, having regard to good

mining industry practice;
(h) carry out prospecting and mining activities in
accordance with international best practice and the
prescribed guidelines; and
(i) sign a community development agreement with
the community where mining operations are to be
carried out in such a manner as shall be prescribed
in Regulations.
110. (1) The holder of a mining licence shall keep at Record-keeping
and reporting
the registered office, a complete and accurate record of the requirements.
mining operations in the prescribed form.
(2) For the purpose of subsection (1) records shall
include –
(a) copies of all maps, geological reports, sample
analysis, aerial photographs, cores, logs and tests
and other data obtained and compiled by the
licence holder;
(b) financial statements and such other books of
account as the Cabinet Secretary may prescribe;
and
(c) such other reports and information as may be
prescribed or otherwise determined by the Cabinet
Secretary.
111. (1) Subject to the terms and conditions of the Amendment of
programme of
licence, the holder of a mining licence shall notify the mining
Cabinet Secretary of any proposed amendment to the operations.
approved programme for mining operations.
(2) Unless the Cabinet Secretary rejects the proposed
amendment, the amendment shall take effect three months
after the date of notification under subsection (1).
(3) A proposed amendment which is likely to
substantially alter the approved programme of mining
operations shall not take effect unless expressly approved
by the Cabinet Secretary.
112. (1) The holder of a mining licence shall notify Newly discovered
minerals.
the Cabinet Secretary of the discovery of any mineral to
which the licence does not relate within thirty days of the
discovery.
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(2) The notification under sub-section (1) shall
include the particulars of the site and such other
circumstances of the discovery as may be prescribed or
otherwise required by the Cabinet Secretary.
(3) Subject to subsections (1), the holder of the
mining licence may apply to the Cabinet Secretary to
include a newly discovered mineral or minerals under the
mining licence.
(4) An application to include a newly discovered
mineral or minerals made under subsection (3) shall be in
the prescribed form and shall include a proposed
programme for mining operations relating to such mineral
or minerals.
(5) The Cabinet Secretary, on recommendation of the
Mineral Rights Board may approve an application made in
accordance with subsections (3), subject to such additional
conditions as the Cabinet Secretary may prescribe.
113. (1) The holder of a mining licence shall give the Cessation,
suspension, or
Cabinet Secretary a notice of any intention to cease or curtailment of
suspend mining operations, or curtail production carried on production in
respect of mining
pursuant to the mining licence. licences.

(2) For the purposes of subsection (1), the holder shall

give notice of at least –
(a) six months, for cessation of mining operation;
(b) three months, for suspension of mining operation;
or
(c) one month, for curtailment in production.
(3) A notice given under section shall include a
statement that sets out the technical and economic basis for
the proposed cessation, suspension or curtailment of
production.
(4) Upon receipt of a notice given in accordance with
this section, the Cabinet Secretary shall investigate the
circumstances leading to the proposed cessation,
suspension or curtailment of production and if he or she is
satisfied, the cessation, suspension or curtailment of
production should be granted.
(5) The Cabinet Secretary may approve the cessation,
or suspension of mining operations or curtailment of
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production proposed by the licence holder subject to the

holder complying with such conditions as the Cabinet
Secretary may determine.
(6) The Cabinet Secretary shall prescribe the period
within which a suspension allowed under this section may
be acceptable.
(7) Where the holder is unable to give the required
notice as provided under subsection (1) and the holder
suspends or curtails production from a mine, the holder
shall, within three days of the suspension or curtailment,
notify the Cabinet Secretary.
(8) The Cabinet Secretary shall make Regulations to
provide for the conditions to manage the mines and the
licence area where a cessation notification has been
approved.
114. (1) The holder of a mining licence may apply to Renewal of
mining licence.
the Cabinet Secretary for the renewal of the licence.
(2) An application under subsection (1) shall be made
in the prescribed form and be accompanied by the
prescribed fee in respect of all or part of the licence area.
(3) An application for the renewal of a mining licence
shall be made at least one year before the expiry of the
licence.
115. An application for the renewal of a mining Application for
renewal of mining
licence shall contain the information or be accompanied by licence.
the following documents –
(a) a proposed programme of mining operations to be
carried out during the term of renewal;
(b) a plan of the area in respect of which renewal of
the mining licence is sought including all or any of
the contiguous blocks in the mining licence area;
(c) an approved environmental impact assessment
licence, social heritage assessment , environmental
management plan in respect of the applicant’s
proposals, where required under the
Environmental Management and Coordination Act
and Community Development Agreement ; and
(d) such additional information as the Cabinet
Secretary may prescribe.
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116.The term of renewal of a mining licence shall not Term of renewal.

exceed –
(a) fifteen years; or,
(b) the remaining life of the mine,
whichever is the shorter and shall be specified in the
licence.
PART VII—MINERAL AGREEMENTS
117. (1) The Cabinet Secretary in consultation with Mineral
agreement.
the National Treasury may enter into a mineral agreement
with the holder of a mining licence where the proposed
investment exceeds five hundred million United States
dollars.
(2) A mineral agreement shall include terms and
conditions relating to –
(a) the minimum prospecting or mining operations to
be carried out and the time table determined for
purposes of such operations;
(b) the minimum expenditure in respect of the
prospecting or mining operations;
(c) the manner in which prospecting or mining
operations shall be carried out;
(d) the environmental obligations and liabilities,
subject to the requirement of the Environment
Management and Co-ordination Act;
(e) the procedure for settlement of disputes;
(f) the processing, whether wholly or partly in Kenya,
of any mineral or group of minerals found,
obtained or mined by the holder of a mineral right
in the course of mining operations;
(g) the basis on which the market value of any
mineral or group of minerals in question may from
time to time be determined;
(h) insurance arrangements;
(i) resolution of disputes through an international
arbitration or a sole expert; and
(j) community development plans;
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(k) the payments of royalties, taxes, cess and other

fiscal impositions; and
(l) financial arrangements.
(3) Nothing contained in a mineral agreement shall be
construed as to absolve any party to such agreement from a
requirement prescribed by law.
(4) A mineral agreement shall be prepared in
accordance with a standard format as may be prescribed in
Regulations.
(5) All mineral agreements shall be submitted to the
National Assembly and the Senate for ratification.
118. The Cabinet Secretary may, on behalf of the Power to
negotiate mineral
State, on the advice of the Mineral Rights Board, negotiate agreements.
with an applicant for or holder of a prospecting licence, a
retention licence or a mining licence in respect of large
scale mining or exploitation of minerals in the marine and
terrestrial areas in accordance with the provisions of this
Act and any other written law.
119. (1) Subject to Article 35 of the Constitution and Publication of
mineral
any other written law, all mineral agreements entered into agreements.
in accordance with this Act shall be public and be made
accessible to the public.
(2) The Cabinet Secretary shall ensure access to
information under this Act, including ensuring that mineral
agreements and the status thereof is available in the official
website of the Ministry for the time being responsible for
mining.
(3) The Cabinet Secretary shall make Regulations to
provide for accountable and transparent mechanisms of
reporting mining and mineral related activities, including-
(a) revenues paid to the government by mineral right
holders; and
(b) production volumes under each licence or permit.
(4) The Cabinet Secretary shall publish on the
ministry website, annually, records, reports, mineral
agreements and any other relevant information.
120. (1) The Cabinet Secretary shall have regard to Requirements for
conclusion and
provisions of Article 71 of the Constitution prior to execution of
executing any mineral agreements, or other agreement mineral
agreements.
relating to the exploitation of any natural resources.
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(2) Any agreement relating to large scale mining
operations on terrestrial and marine areas shall be
submitted to the National Assembly and the Senate for
ratification before execution by the Cabinet Secretary.
121. (1) A term or condition contained in a mineral Consistency with
legislation.
agreement which is inconsistent with any provision of this
Act or the Constitution shall, to the extent of the
inconsistency, be void and of no legal effect.
(2) A term or condition forming part of a mineral
agreement shall not absolve any party to it from complying
with provisions of this Act or any other written law.
122. The Cabinet Secretary shall apply the criteria set Distinction
between large
out in the Second Schedule for the purpose of scale operations
distinguishing between small scale and large scale and small scale
operations.
operations.
Small Scale Operations
123. The following types of mineral rights may be Categories of
mineral rights
granted in respect of authorising small scale operations - relating to small
scale operations.
(a) a reconnaissance permit;
(b) a prospecting permit; and
(c) a mining permit.
124. (1) A person shall not be granted or be entitled to Eligibility for
mineral rights
hold or acquire an artisanal mining permit, a prospecting relating to small
permit or a mining permit under this Part unless that person scale operations.
is –
(a) a citizen of Kenya; or
(b) a body corporate, where no less than sixty percent
of the shareholding is held by citizens of Kenya.
(2) An artisanal mining permit, prospecting permit or
a mining permit shall cease to be valid when its holder or
any of its holders is or becomes ineligible for the grant of a
permit.
Reconnaissance Permit
125. (1) A person may apply for a reconnaissance Application for a
reconnaissance
permit to the Cabinet Secretary in the prescribed form and permit
upon payment of the prescribed fee.
(2) An application for a reconnaissance permit shall
contain the following−
(a) the full name, nationality and address of the
applicant;
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(b) the mineral or minerals in respect of which the

permit is sought; and
(c) the area in respect of which the permit is sought.
126. (1) The holder of a reconnaissance permit shall Rights conferred
by a
enjoy the non-exclusive rights to conduct reconnaissance Reconnaissance
for the mineral or minerals in the area specified in the Permit
permit.
(2) The holder of a reconnaissance permit may, in
exercise of the right conferred under sub-section (1) enter
into the land within the area specified in the permit and
take all reasonable measures to undertake reconnaissance
of the land .
127. The holder of reconnaissance permit shall− Obligations under
reconnaissance
permit
(a) comply with the terms and conditions specified in
the Permit; and
(b) take all necessary measures to protect the
environment.
128 (1) A reconnaissance licence or permit and Mineral Rights on
Community land
prospecting licence or permit shall be granted under this
Act on, under or over community land unless it involves
excavation and drilling in which case consent should be
sought prior to those activities being undertaken from−
(a) the authority obligated by the law relating to
administration and management of community
land to administer community land; or
(b) the county government in relation to the
community land that is un-alienated.
(2) Consent shall be deemed to have been be given for
the purposes of this Act where the registered community
land representatives have─
(a) entered into a legally binding arrangement with
the applicant for the mineral rights or with the
Government, which allows the conduct of mining
operations; or
(b) entered into an agreement with the applicant for
the mineral right concerning the payment of
adequate compensation.
(3) Subject to the law relating to community land,
where consent is granted prior to any change in land
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ownership, such consent shall be valid for as long as the
mineral right subsists.
(4) The Cabinet Secretary may make Regulations to
provide for the grant of mineral rights over community
land which is not already covered by valid licences and
permits duly granted under this Act, during the period of
validity and renewal terms.
Prospecting Permit
129. (1) A person may apply for a prospecting permit Application for
prospecting
to the Cabinet Secretary in the prescribed form and upon permit.
payment of the prescribed fee.
(2) An applicant for a prospecting permit shall contain
the following information –
(a) the full name, nationality and address of the
applicant or, in the case of a body corporate, the
place of incorporation and the registered address;
(b) the mineral or minerals in respect of which the
permit is sought;
(c) the area in respect of which the permit is sought;
(d) the particulars of the proposed prospecting
operations to be carried out under the permit; and
(e) details of the experience and financial resources
available to the applicant to conduct the
prospecting operations.
130. (1) Where the Cabinet Secretary intends to reject Notice to
applicants.
an application, he or she may issue a notice of intention to
reject an application to the applicant.
(2) A notice under sub-section(1) shall state –
(a) the grounds for the intended rejection of the
application; and
(b) a period within which the applicant may make an
appropriate proposal to correct or remedy the
ground for the intended refusal.
(3) Where an applicant does not respond to the notice
within the period stated in the notification, the Cabinet
Secretary shall reject the application.
131. (1) The term of a prospecting permit shall be Term and size of
prospecting
specified in the permit, but in any case shall not exceed five permit.
years and may be renewed for one further term.
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(2) The area contained in a prospecting permit shall

not exceed twenty five contiguous blocks.
132. (1) The holder of a prospecting permit shall Rights conferred
by prospecting
enjoy the right to prospect for the mineral or minerals and permit.
in the area specified in the permit.
(2) The holder of a prospecting permit may, in
exercise of the right conferred under subsection (1) -
(a) demarcate areas that fall within the permit area;
(b) enter into land that falls within the area specified
in the permit and take all reasonable measures to
undertake prospecting operations on or under the
surface of the land; and
(c) erect equipment, plant and buildings for the
prospecting operations.
(3) Save for any prescribed quantities required for
sampling and assaying purposes, a prospecting permit
granted under this Act shall not be construed to confer
upon the holder the right to dispose of minerals obtained in
the course of prospecting without the consent of the
Cabinet Secretary.
133. The holder of a prospecting permit shall – Obligations under
prospecting
permit.
(a) comply with the terms and conditions specified in
the permit;
(b) take all necessary measures to protect the
environment; and
(c) comply with any prescribed record keeping
obligations.
134. The holder of a prospecting permit may apply for Renewal of
prospecting
the renewal of the permit to the Cabinet Secretary in the permit.
prescribed form and upon payment of the prescribed fee.
135. The term for renewal of a prospecting permit Term of renewal.

shall be specified in the permit, and in any case shall not

exceed five years, which is the maximum period of a
prospecting permit issued under this Act.
Mining Permit
136. (1) A person may apply for a mining permit to Application for
mining permit.
the Cabinet Secretary in the prescribed form and upon
payment of the prescribed fee.
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(2) An applicant for a mining permit shall provide the
following information to the Cabinet Secretary –
(a) the full name, nationality and address of the
applicant, or, in the case of a body corporate, its
place of incorporation, names and nationalities of
the directors and its registered address;
(b) the mineral in respect of which the permit is
sought;
(c) details of the area in respect of which the permit is
sought;
(d) particulars of the proposed mining operations to
be carried out under the permit; and
(e) details of the mining experience and financial
resources available to the applicant to conduct the
mining operations.
137. (1) The Cabinet Secretary, on recommendation Approval of
application for
of the Mineral Rights Board, shall not reject an application mining permit.
for a mining permit, unless he or she has given the
applicant a notice of intention to reject the application.
(2) A notice under sub-section (1) shall state the
grounds for rejecting the application and a period within
which the applicant may make an appropriate proposal to
correct or remedy the grounds set out in the notice.
(3) Where the grounds for the intended refusal are not
capable of being remedied, the applicant may show cause,
within the specified period, to the satisfaction of the
Cabinet Secretary, why the application should not be
refused.
138. (1) The term of a mining permit shall be Term of mining
permit.
specified in the permit and shall not exceed five years.
(2) The area contained in a mining permit shall not
exceed two contiguous blocks.
139. (1) The holder of a mining permit shall enjoy the Rights conferred
by mining permit.
exclusive rights to carry out mining operations in the area
specified in the permit.
(2) In exercising the rights referred to in subsection
(1), the holder of a mining permit may –
(a) enter the area specified in the permit and take all
reasonable measures to carry out the approved
mining operations;
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(b) erect on the area buildings and equipment

necessary to carry out the mining operations; and
(c) subject to the payment of royalties, use or dispose
of any minerals recovered.
(3) A person appointed by the holder of a mining
permit to act as an agent may exercise the rights of the
holder of the permit, subject to any limitations on the
powers of the agent contained in the instrument of
appointment.
140. The holder of a mining permit shall– Obligations under
mining permit.
(a) conduct mining operations in compliance with a
plan approved by the Cabinet Secretary;
(b) demarcate and keep demarcated the mining area in
the prescribed manner;
(c) take all measures necessary to protect and restore
the environment within the mining area;
(d) submit to the Cabinet Secretary up to date
quarterly returns on mine development and
mineral production;
(e) comply with any prescribed record keeping
obligations;
(f) stack or dump any minerals or building materials
or waste products in the manner provided for in
the permit or as otherwise approved by the
Cabinet Secretary;
(g) not use such equipment as may be prescribed in
Regulations or chemicals such as cyanide and
mercury; and
(h) pay royalties, fees, mining taxes and charges.
141. The holder of a mining permit may apply for the Renewal of
mining permit.
renewal of the permit by application to the Cabinet
Secretary in the prescribed form and upon payment of the
prescribed fee.
142. (1) The term of renewal of a mining permit shall Term of renewal.

be specified in the permit but shall not exceed –

(a) five years; or
(b) the remaining life of the mine,
whichever is the shorter.
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(2) The Cabinet Secretary may make Regulations to
provide for inspections with respect of any area to which a
mining permit is issued under this Act.
PART VIII—SURRENDER, SUSPENSION AND
REVOCATION OF MINERAL RIGHTS
143. The holder of a mineral right may by notice in Application for
approval of
writing to the Cabinet Secretary apply to surrender the surrender.
mineral right.
144. (1) The Cabinet Secretary, on the Approval required
for the surrender
recommendation of the Mineral Rights Board, may allow of mineral right.
the holder of a mineral right to surrender that mineral right
in respect of the whole or any part of the area specified in
the mineral right.
(2) The holder of a mineral right shall apply to
surrender the mineral right to the Cabinet Secretary.
(3) An application under sub-section (2) shall be in
the prescribed form and the applicant shall give -
(a) at least three months’ notice of intention to
surrender the whole or part of the area specified in
the mineral right; or
(b) in the case of a prospecting permit at least one
months’ notice of intention to surrender the whole
or part of the area specified in the permit.
(4) An application made under subsection (2) shall
include –
(a) a plan of the area to be surrendered in a form
which is acceptable to the Cabinet Secretary if the
surrender relates to part of the area specified in the
right;
(b) proof of implementation of any environmental
management plans; and
(c) all records and reports with respect to the
prospecting or mining operations carried out in the
area to be surrendered.
145. (1) A proposed surrender of an area covered Notification of
approval of
under a mineral right shall have no effect unless and until surrender.
the Cabinet Secretary, on the recommendation of the
Mineral Rights Board, gives the holder thereof written
notice that the application for surrender has been approved.
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(2) An approval for the surrender of a mineral right

may be granted subject to such conditions as the Cabinet
Secretary, on the recommendation of the Mineral Rights
Board, may deem appropriate.
146. (1) Except as provided by section 42(2) of this Effect of
surrender.
Act, a mineral right shall cease to have any effect when an
application for its surrender is approved.
(2) Where the application is in respect of part of the
area specified in the mineral right it shall cease to have
effect in respect of that area but shall continue to have
effect in respect of the remaining area.
147. (1) The Cabinet Secretary, on the Grounds for
suspension and
recommendation of the Mineral Rights Board, may revocation.
suspend or revoke a mineral right if the holder–
(a) fails to make a payment required under this Act on
the due date;
(b) fails to comply with any condition specified in the
right or an obligation placed on the holder by this
Act, or fails to take the action required by the
Cabinet Secretary to be taken in accordance with
subsection (3);
(c) commits an offence under this Act;
(d) makes or is found to have made a false statement
in the application for the grant or renewal of the
mineral right; or
(e) is adjudged bankrupt or in the case of a company
it is declare insolvent.
(2) The Cabinet Secretary may suspend or revoke a
prospecting or mining permit if the holder does not
commence prospecting or mining operations under the
permit in accordance with the approved work programme
or programme of mining operations.
(3) Before suspending or revoking a mineral right in
accordance with subsection (2), the Cabinet Secretary shall
give the holder a written notice requiring him –
(a) to comply with the condition or obligation within
a reasonable period of time; or
(b) to show cause, within that period, as to why the
mineral right should not be suspended or revoked.
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148. (1) Subject to section 42 (2), a mineral right shall Effect of
revocation.
cease to have effect upon its cancellation.
(2) The revocation of a mineral right shall not
prejudice any liability or obligation incurred under or in
relation to the mineral right prior to its revocation.
149. (1) The holder of a mineral right who applies to Assets on
termination.
surrender the right shall furnish the Cabinet Secretary with
a statement of the immovable and movable assets and any
other information in the prescribed form –
(a) a statement of assets which identifies the assets the
holder intends to remove from the area and those
the holder intends to leave; and
(b) a notification of any potentially hazardous
substances, excavations and buildings in the area.
(2) Where a mineral right is not renewed at the end of
its term or is cancelled by the Cabinet Secretary, the former
holder of the mineral right shall provide a statement to the
Cabinet Secretary in the prescribed form containing the
information prescribed in subsection (1) within such
reasonable period as the Cabinet Secretary may direct.
(3) All immovable assets of the holder under the
mining licence shall vest in the Republic from the effective
date of the surrender or termination of the licence.
(4) All movable assets of the holder in the mining area
which are fully depreciated for tax purposes shall vest in
the County Government without charge on the effective
date of such termination and any property not then fully
depreciated for tax purposes, the County Government or
the Republic shall have the right of first refusal for the sale
of such assets from the effective date of termination at the
depreciated cost.
(5) Subject to subsection (4), the Cabinet Secretary
may permit the assets to be removed solely and exclusively
for the purpose of use by the holder in another mining
operation in the country.
(6) The Cabinet Secretary shall prescribe Regulations
on the use of the assets.
150. Where a mineral right is not renewed or is Delivery of
records and
surrendered by the holder or cancelled by the Cabinet documents on
Secretary, the holder shall deliver to the Cabinet Secretary termination.
within a period of two months –
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(a) all the records which, prior to termination, the

holder was obliged to maintain under this Act; and
(b) all plans or maps of the area covered by the
mineral right prepared by or for the holder.
PART IX—SURFACE RIGHTS
COMPENSATION AND DISPUTES
151. The holder of a mineral right or an agent or Evidence of
mineral right to
employee of the holder shall, when exercising a right under be produced.
the mineral right over land owned or occupied by some
other person, produce evidence of the mineral right if
required to do so by any lawful owner or occupier of the
land.
152. The owner or lawful occupier or user of an area Right to graze
livestock and
of land which is the subject of a ,mineral right shall cultivate land.
continue to enjoy the right to graze livestock on the land or
to cultivate the land to the extent, in each case, that doing
so—
(a) does not unduly interfere with the relevant
prospecting or mining operations; and
(b) does not, by virtue of those operations, constitute a
danger or hazard to livestock or crops.
153. (1) Where the exercise of the rights conferred by Principles of
compensation.
a mineral right –
(a) disturbs or deprives the owner or any lawful
occupier or user of the land or part of the land;
(b) causes loss of or damage to buildings and other
immovable property;
(c) causes damage to the water table or deprives the
owner of water supply;
(d) in the case of land under cultivation or grazing of
domesticated animals, causes any loss of earnings
or sustenance suffered by the owner or lawful
occupier of the land,
(e) a demand or claim for compensation may be made
to the holder of the mineral right to pay prompt,
adequate and fair compensation to the lawful
owner, occupier or user of the land in accordance
with the provisions of this Act.
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(2) A mineral right holder shall deposit a
compensation guarantee bond with the relevant Ministry.
(3) The Cabinet Secretary may make Regulations
relating to compensation guarantee bonds.
(4) A person shall not demand or claim compensation
whether under this Act or otherwise –
(a) in consideration for permitting entry to the land
connected with the enjoyment of rights conferred
under a mineral right;
(b) in respect of the value of any mineral in, on or
under the land that is the subject of a mineral
right; or,
(c) for any loss or damage for which compensation
cannot be assessed according to legal principles.
(5) Where a demand or claim for compensation is
disputed, the parties to the dispute shall seek to resolve the
dispute amicably by agreement reached through
negotiations in good faith.
(6) Where a dispute cannot be resolved through
negotiations within a reasonable period of time, either
party to the dispute may refer the matter to the Cabinet
Secretary for a determination in accordance with section
129 of this Act.
(7) A holder of a mineral right shall not commence
mining of minerals unless the lawful occupier, owner or
user of land is compensated.
(8) The Cabinet Secretary in consultation with the
community and the National Land Commission shall in
such manner as may be prescribed, ensure that the
inhabitants or communities who prefer to be compensated
by way of resettlement as a result of being displaced by a
proposed mineral operation are settled on suitable alternate
land, with due regard to their economic wellbeing, social
and cultural values and the resettlement is carried out in
accordance with the relevant physical planning law.
(9) The cost of resettlement under sub-section (8)
shall be borne by the holder of the mineral right.
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154. Any dispute arising as a result of a mineral right General

provisions on
issued under this Act, may be determined in any of the dispute resolution.
following manners—
(a) by the Cabinet Secretary in the manner prescribed
in this Act;
(b) through a mediation or arbitration process as may
be agreed upon by the disputing parties or as may
be stated in an agreement; or
(c) through a court of competent jurisdiction.
155. Subject to the provisions of this Act, the Cabinet Determination of
disputes by
Secretary may inquire into and determine the following Cabinet Secretary.
matters—
(a) a dispute of the boundaries of an area held under a
prospecting or mining right;
(b) any wrongful act committed or omitted in the
course of prospecting and mining operations, by
any persons against any other person;
(c) a claim by any person to be entitled to erect, cut,
construct or use any pump, line of pipes, flume,
race, drain, dam or reservoir for mining purposes;
(d) a claim to have any priority of water taken,
diverted, used or delivered for mining purposes, as
against any other person claiming the same ; or
(e) assessment and payment of compensation where
provided for under this Act.
156. (1) A dispute referred to in section 155 may be Procedure for
determination of
referred to and determined by the Cabinet Secretary in disputes by the
accordance with the following procedures— Cabinet Secretary.

(a) the party referring the dispute to the Cabinet

Secretary shall lodge a memorandum with the
Cabinet Secretary together with a statement of
claim in the prescribed form;
(b) on receipt of the memorandum, the Cabinet
Secretary shall notify the party against whom the
complaint has been made of the referral of the
dispute and shall advise the other party of the
nature of the complaint and invite that party to
lodge a memorandum in response to the
complaint;
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(c) upon receiving the written response from the party
against whom a complaint has been lodged for
determination, the Cabinet Secretary shall notify
the parties of the time and place at which the
matter will be heard and determined;
(d) the parties shall be invited to state their respective
cases before the Cabinet Secretary and shall be
entitled to adduce evidence on oath or affirmation
in support of their cases; and
(e) after hearing the statements and receiving the
evidence the Cabinet Secretary shall make a
written determination of the dispute.
(2) Any person who is a party to a dispute referred to
the Cabinet Secretary for determination under this section
may appear in person or be represented by an advocate.
(3) In making a determination of a dispute, the
Cabinet Secretary shall, having regard to the subject matter
of the dispute, apply relevant rules and principles
concerning the matter in dispute.
(4) Subject to section 155, the Cabinet Secretary may
make such orders as he may consider necessary to give
effect to a determination, including ordering the payment
of compensation by one party to the dispute to the other.
(5) An order made by the Cabinet Secretary under
this section shall be enforceable by a Court as if the same
were an order of that Court.
(6) The Cabinet secretary shall keep a record of all
matters heard and determined by him, and shall keep a
written record of the evidence given before him.
(7) Any person who is interested in any dispute,
decision or order shall be entitled to obtain a copy of such
record and notes upon payment of the prescribed fee.
(8) The Cabinet Secretary may send a copy, certified
under his hand and seal, of any decree or order made by
him to any civil court within the local limits of whose
jurisdiction the subject-matter of the decree is situated, and
such civil court shall enforce the decree of the Cabinet
Secretary in the same manner in which it would enforce its
own decree or order.
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(7) The Cabinet Secretary shall by notice in the

Gazette prescribe rules of procedure to be applied in
respect to determination of disputes under this Act.
157. Any person aggrieved by any decree, order or Appeals.

decision made or given under the powers vested in the

Cabinet Secretary may appeal within thirty days to the
High Court.
PART X-DEALINGS IN MINERALS
158. (1) A person shall not dispose of minerals, Disposal of
minerals.
whether for sampling, assay, analysis or otherwise except –
(a) with the written consent of the Cabinet Secretary;
(b) where the person is the holder of a mineral right,
in accordance with the conditions of the mineral
right;
(c) where the person is the holder of a mineral dealer's
licence or a diamond dealer’s licence in
accordance with the conditions of the licence; or
(d) in any other case, as otherwise permitted by or
under this Act.
(2) No title to minerals shall pass in any case where a
person disposes of minerals otherwise than in accordance
with subsection (1).
159. (1) A person shall not engage in mineral Authorisation to
deal in minerals.
dealings, either as principal or agent, except with and in
accordance with a mineral dealer’s licence or a mineral
dealer’s permit.
(2) Notwithstanding subsection (1), the holder of a
mineral right may deal in minerals lawfully acquired in
accordance with the terms and conditions of the mineral
right.
(3) Subsection (1) shall not apply to –
(a) the holder of a diamond dealer’s licence who is
engaged in buying diamonds in accordance with
the provisions of the licence; or
(b) any person lawfully entitled to carry on the
business of a banker.
160. (1) An application for a mineral dealer’s licence Application for
mineral dealer’s
shall be made to the Cabinet Secretary in the prescribed licence.
form and shall be accompanied by the prescribed fee.
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2016 Mining No. 12

(2) An application made under subsection (1) shall be
accompanied by evidence sufficient to show that the
applicant is in possession of, or commands, either
sufficient knowledge, experience, or working capital to
ensure that the applicant can carry on the business that
would be permitted under the licence.
161. (1) A mineral dealer's licence shall expire on the Term of mineral
dealer’s licence.
thirty-first day of December of the year in which it is
issued.
(2) A mineral dealer may apply for renewal of a
mineral dealer’s licence to the Cabinet Secretary in the
prescribed form and upon payment of the prescribed fee.
162. The holder of a mineral dealer’s licence shall not Obligations under
mineral dealer’s
– licence.
(a) deal in minerals otherwise than in accordance with
the conditions set out in the licence; or
(b) engage in mineral dealings permitted under the
licence with a person who has not acquired the
minerals lawfully or is otherwise not lawfully
entitled to deal in the minerals.
163. (1) The holder of a mineral dealer’s licence shall Record-keeping
obligations of
keep a register of the mineral dealings in the prescribed holder of mineral
form. dealer’s licence.

(2) The holder of a mineral dealer’s licence shall

record in the register the following information in respect
of each transaction –
(a) the nature and weight of the minerals purchased or
sold;
(b) the price paid or received for the minerals;
(c) the date of the purchase or sale; and
(d) the name and address of the vendor or the
purchaser or consignee.
(3) The holder of a mineral dealer’s licence shall
submit to the Cabinet Secretary a true copy of the register
in duplicate for the preceding three months, together with a
statutory declaration of the correctness thereof, in the
months of January, April, July and October of every year.
164. (1) A mineral dealer’s permit shall be issued, to Mineral dealers
permit.
citizens of Kenya or in the case of a body corporate, where
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No. 12 Mining 2016

sixty percent of the shareholding is held by citizens of

Kenya.
(2) A mineral dealer’s permit shall be issued by the
Cabinet Secretary upon application and payment of the
requisite fees.
(3) A mineral dealer’s permit shall expire on the thirty
first day of December of the year in which it is issued.
(4) The holder of a mineral dealer’s permit shall not
export minerals but shall have the right to buy and sell
locally.
165. (1) A person shall not deal in diamonds, as either Dealings in
diamonds.
principal or agent unless the person has obtained a
diamond dealer’s licence.
(2) Notwithstanding subsection (1), the holder of a
mineral right may deal in diamonds lawfully acquired in
accordance with the terms and conditions of a mineral
right.
(3) Subsection (1) shall not apply to any person
lawfully entitled to carry on the business of a banker.
166. (1) A person shall make an application for a Application for
diamond dealer’s
diamond dealer’s licence to the Cabinet Secretary in the licence.
prescribed form and shall be accompanied by the
prescribed fee.
(2) An application made under subsection (1) shall be
accompanied by evidence sufficient to show that the
applicant is in possession of, or commands, sufficient
working capital to ensure that he can carry on the business
that would be permitted under the diamond dealer’s
licence.
(2) The Cabinet Secretary shall, before issuing a
licence under this section, require the applicant to provide
security, by way of bond or cash deposit in the prescribed
form as the Cabinet Secretary shall require, for the due
payment of any prescribed fees or royalties which may
become payable by such dealer in the course of his
business under this Act.
167. (1) A diamond dealer’s licence shall expire on Term of diamond
dealer’s licence.
the thirty-first day of December of the year in which it is
granted.
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(2) A diamond dealer may apply for renewal of a
diamond dealer’s licence to the Cabinet Secretary in the
prescribed form and upon payment of the prescribed fee.
168. (1) The holder of a diamond dealer’s licence Obligations under
diamond dealer’s
shall not – licence.

(a) deal in diamonds except in accordance with the

conditions set out in the licence;
(b) engage in mineral dealings concerning diamonds,
as either principal or agent, except with either the
holder of a mineral right who is authorized to mine
diamonds, or the holder of a diamond dealer’s
licence;
(c) store diamonds except at the place or in the
premises specified in the licence; or
(d) deal in diamonds as either principal or agent,
except at the place or in the premises specified in
the licence.
(2) The holder of a diamond dealer’s licence shall
comply with any other condition specified in the licence.
(3) The holder of a diamond dealer’s licence shall
keep a register of dealings in diamonds in the prescribed
form.
(4) The holder of a diamond dealer’s licence shall
record in the register the following information in respect
of transactions for diamonds –
(a) the nature and weight of the diamonds ;
(b) the price of the diamonds;
(c) the date of the transaction;
(d) in the case of a purchase of diamonds, details of
the vendor’s authority to sell the minerals; and,
(e) the name and address of the vendor, purchaser or
consignee.
(5) The holder of a diamond dealer’s licence shall
submit to the Cabinet Secretary in the months of January,
April, July and October of every year, a true copy of the
register in duplicate for the preceding three months,
together with a statutory declaration of the correctness
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No. 12 Mining 2016

thereof, and shall also produce and exhibit the register to a

police officer of or above the rank of Inspector whenever
required in writing by the officer.
169. (1) The holder of a diamond dealer’s licence may Appointment of
agent by holder of
appoint an agent for the purpose of engaging in diamond diamond dealer’s
dealings on behalf of the licence holder. licence.

(2) The appointment of an agent under subsection (1)

shall not operate to exempt the holder of a diamond
dealer’s licence from compliance with the relevant
provisions of this Act and the conditions of the licence.
(3) Where the holder of a diamond dealer’s licence
appoints an agent he or she shall furnish the Cabinet
Secretary with the following information in the prescribed
form -
(a) the name and registered address of the agent;
(b) the date of the appointment of the agent; and,
(c) the duration of the instrument of appointment
between the licence holder and the agent and
details of the terms and conditions of the agency
agreement.
(4) An agent appointed by the holder of a diamond
dealer’s licence may exercise the rights of the holder of the
licence subject to any limitations on the powers of the
agent contained in the agreement or instrument of
appointment between the licence holder and the agent.
170. (1) A person or company shall provide any mine Mines support

support services subject to being issued with a licence by

the Cabinet Secretary, upon recommendation of the
Mineral Rights Board.
(2) The Cabinet Secretary shall prescribe Regulations
to give effect to this section.
Import and Export of Minerals
171. (1) A person shall not export a mineral otherwise Export of
minerals.
than in accordance with an export permit granted by the
Cabinet Secretary.
(2) The holder of—
(a) a mineral right;
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2016 Mining No. 12

(b) a mineral dealer’s licence; or
(c) a diamond dealer’s licence,
may apply to the Director of Mines for an export
permit in the prescribed form.
(3) The grant of an export permit to a person in
accordance with this Act shall not exempt the person from
an obligation to comply with the requirements of any other
law relating to the export of minerals.
(4) Where diamonds are exported pursuant to a permit
issued under this section, such export shall conform to the
international best practices.
(5) The Cabinet Secretary may make Regulations to
govern value addition on minerals.
172. Where a person imports minerals, the person Import of
minerals.
shall make a declaration at the point of entry in the
prescribed form.
Suspension and Revocation of Licence
173. (1) The Cabinet Secretary may suspend or revoke Suspension and
revocation.
a licence or permit granted under this Part if the holder -
(a) fails to make a prescribed payment by the due
date;
(b) fails to comply with a condition specified in the
licence or an obligation imposed on the holder by
this Act and fails to take action to remedy a breach
within a reasonable time;
(c) makes a false statement or gives false information
to the Cabinet Secretary or to a public officer
exercising functions under this Act that was,
which information is material to the grant of the
licence or permit;
(d) dies;
(e) becomes of unsound mind;
(f) is adjudged bankrupt,;
(g) is subject to financial difficulty or otherwise
ineligible to hold the licence or permit; or
(h) commits any offence under this Act.
(2) Before suspending or revoking a licence or permit
under subsection (1) the Cabinet Secretary shall give the
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holder of the licence or permit written notice requiring the

holder –
(a) to comply with the condition or obligation within
a reasonable period of time; or
(b) where this is not possible, to show cause within
that period, why the licence should not be
suspended or revoked.
174. (1) A licence or permit which is revoked shall Effect of
revocation.
cease to have any effect.
(2) The revocation of a licence or permit shall not
prejudice any liability or obligation incurred under or in
relation to the licence or permit prior to its cancellation.
175. Upon revocation of a licence, the holder shall Delivery of
records and
deliver to the Cabinet Secretary within the prescribed documents on
period all the records which, prior to revocation or revocation.
expiration, he was obliged to maintain under this Act.
PART XI -HEALTH, SAFETY AND ENVIRONMENT
176. (1) A mineral right or other licence or permit Environmental
laws to prevail.
granted under this Act shall not exempt a person from
complying with any law concerning the protection of the
environment.
(2) A mining licence shall not be granted to a person
under this Act unless the person has obtained an
environmental impact assessment licence, social heritage
assessment and the environmental management plan has
been approved.
177. A provision of this Act and any right or Water rights laws
to prevail.
entitlement conferred under a mineral right shall not
exempt a person from compliance with the provisions of
the Water Act, 2002 concerning the right to the use of
water from any water resource.
178. (1) A provision of this Act and a right or Occupational
health and safety.
entitlement conferred under a mineral right shall not
No. 15 of 2007
operate to exempt a person from compliance with the
provisions of the Occupational Health and Safety Act,
2007 concerning the safety of workers and mine
operations.
(2) In addition to provisions in subsection (1), the
Cabinet Secretary shall make Regulations for safety and
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health of persons employed in mines, and the carrying on
of prospecting or mining operations in safe, proper,
sanitary and effectual manner.
179. The holder of a permit or licence under this Act Land use.

shall use the land in accordance with the terms of the

permit or licence and shall ensure-
(a) the sustainable use of land through restoration of
abandoned mines and quarries;
(b) that the seepage of toxic waste into streams, rivers,
lakes and wetlands is avoided and that disposal
any toxic waste is done in the approved areas only;
(c) that blasting and all works that cause massive
vibration is properly carried out and muffled to
keep such vibrations and blasts to reasonable and
permissible levels in conformity with the
Environmental Management and Coordination
Act; and
(d) that upon completion of prospecting or mining, the
land in question shall be restored to its original
status or to an acceptable and reasonable condition
as close as possible to its original state.
180. (1) The Cabinet Secretary shall not grant a Requirement of
site restoration
prospecting licence, a retention licence or a mining licence and mine closure
to an applicant, unless the applicant has submitted a site plans.
mitigation and rehabilitation or mine-closure plans for
approval.
(2) The Cabinet Secretary may prescribe Regulations
for site rehabilitation and mine-closure obligations.
181. (1) An applicant for a prospecting licence, a Environmental
protection bonds.
retention licence or a mining licence shall provide a bond
or some other form of financial security in this section
called an environmental protection bond sufficient to cover
the costs associated with the implementation of the
environmental and rehabilitation obligations of the holder
under this Act.
(2) An environmental protection bond required under
subsection (1) shall be in a form and for an amount as may
be determined by the Cabinet Secretary having regard to
the particular characteristics of the project.
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(3) In determining the form and amount of the bond

referred to in subsection (2), the Cabinet Secretary shall
take into account the amount that the applicant is required
to provide by way of bond or some other form of financial
security under the provisions of relevant Environmental
Management and Coordination Act.
(4) The Cabinet Secretary may release in part an
environmental protection bond upon the satisfactory
completion of rehabilitation measures undertaken within
the duration of a licence and shall release the bond in full
following the successful completion of all environmental
and rehabilitation obligations mentioned in subsection (1).
PART XII–FINANCIAL PROVISIONS
182. (1) An applicant or a holder of – Fees.

(a) a mineral right,

(b) a mineral dealer’s licence; or
(c) a diamond dealer’s licence,
shall pay such fees or charges and at such time as may
be prescribed, by notice in the Gazette.
(2) The prescribed fees may include -
(a) application filing fees;
(b) report filing fees;
(c) fees for access to geological data; and
(d) fees for access to public registers.
(3) The prescribed charges may include annual
charges payable upon grant of the relevant mineral right,
mineral dealer’s permit or diamond dealer's licence.
(4) The prescribed charges shall be payable annually
for the duration of the mineral right, mineral dealer’s
permit or diamond dealer's licence.
(5) All fees and charges payable under this Act shall
be demanded and recovered in the same manner as a civil
debt.
183. (1) The holder of a mineral right shall pay Royalties.

royalty to the State in respect of the various mineral classes

won by virtue of the mineral right.
(2) The Cabinet Secretary shall prescribe the rates
payable under subsection (1).
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(3) The Cabinet Secretary may require the holder of a
mineral right to make returns relating to any royalties paid
in such manner and within a period as may be prescribed.
(4) Any mineral samples including core samples,
removed for the purposes of testing, shall not be subject to
royalty unless they exceed maximum value stipulated in
regulations
(5) The royalties payable under sub-section (1) shall
be distributed as follows─
(a) seventy percent to the National Government;
(b) twenty percent to the County Government; and
(c) ten percent to the community where the mining
operations occur.
184. A transaction for the transfer of a mineral or Transfer
of mineral right.
mineral product shall be deemed to have occurred at the
point of sale and shall be equal to the arm’s length value of
the mineral or mineral product.
185. (1) A mineral right holder who wins, extracts, Record to be kept
by a mineral
produces, or disposes of minerals or mineral products shall rights holder.
maintain up to date records.
(2) The records required to be kept under sub-section
(1) shall include –
(a) the quantity ; and
(b) the commercially relevant characteristics of the
minerals or mineral products.
(3) The Cabinet Secretary may designate a qualified
person to inspect and examine any samples, books, records
and accounts to ascertain the quantity, quality, grade or
value of minerals or mineral products for the purpose of
ascertaining or verifying the amount of any royalty
payable.
186. (1) All fees, charges and royalties payable by the Payment of fees
,charges and
holder to the State under this Act shall be paid by the royalties
holder into the designated account of the State department
responsible for collecting royalties.
(2) A payment shall be accompanied by a statement
from the holder stating-
(a) details of the mineral or mineral product;
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(b) the relevant point of sale; and

(c) the date and the amount of royalty paid.
(3) A copy of the statement shall be delivered to the
Mining Cadastre Office.
(4) A mineral right holder shall report the royalty
liability for each month by the fifth business day of the
month.
(5) Upon receipt of a royalty payment the State
department responsible for collecting royalties shall issue a
receipt.
187. (1) Where there is a default in payment of the Default in paying
royalties
prescribed royalties by a mineral right holder, the Mining
Cadastre Office shall issue a thirty day notice to the
mineral right holder requiring repayment of the outstanding
royalties.
(2) In the event that the mineral right holder does not
pay the royalties payable within the period specified in the
notice -
(a) the Mining Cadastre Office shall record the
outstanding royalties in the cadastral register; and
(b) the Cabinet Secretary shall suspend the respective
licence or permit.
(3) In the event that the mineral right holder does not
pay the royalties payable within sixty days, the Cabinet
secretary shall revoke the licence or permit as the case may
be.
(4) Where the holder of mineral right fails to pay the
prescribed royalty with the prescribed period, the Cabinet
Secretary may prohibit the disposal of any mineral or
mineral product from the mining area concerned, or from
any other mining area held by that mineral right holder.
188. (1) A mineral right holder may apply to the Reduction or
suspension of
Cabinet Secretary for a reduction or temporary suspension royalties
of a royalty rate.
(2) The Cabinet Secretary shall make Regulations to
provide for the conditions and criteria for determining
applications for reduction or suspension of payment of
royalties.
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189. A fee, royalty or other charge payable under this Recovery of
royalty, fees and
Act and which remains unpaid shall be deemed to be a debt other charges
due to the national government which may be recoverable
summarily.
190. The Income Tax (Transfer Pricing) Rules, 2006 Transfer pricing

or successor legislation shall apply to transactions under LN 67 of 2006

this Act.
PART XIII— RECORDS AND REGISTRATION OF
MINERAL RIGHTS
191. (1) There shall be established and maintained an Register of
mineral rights.
up to date computerized mining cadastre and registry
system, including a register of mineral rights.
(2) The register of mineral rights shall be a public
document and may be inspected in such a manner as may
be prescribed in Regulations.
192. (1) The register established under section 164 Requirement to
enter information
shall contain details of each application, grant, assignment, in register.
transfer, notice, surrender, suspension and cancellation of a
mineral right.
(2) The Cabinet Secretary may prescribe such other
records and instruments that shall entered into the register.
(3) The computerized mining cadastre and registry
system shall include an online transactional facility to
enable applications for granting and renewal of mineral
rights to be submitted online.
(4) The cadastre shall be a public document and may
be inspected by an interested person upon the payment of a
prescribed fee.
(5) The National Land Commission shall keep a copy
of the cadastre.
193. An authorised officer shall, where – Power to correct
register.
(a) an error is made in the register; or
(b) a matter is incorrectly entered or recorded in the
register,
notify the person affected by the error and promptly rectify
the error by correcting the error in the register.
194. An authorised officer may, upon being satisfied Replacement of
originals.
that the original of any document or instrument evidencing
any right under this Act has been lost, destroyed or
rendered illegible, at the request of the holder of such
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document or instrument and on payment of any prescribed

fee –
(a) prepare, endorse, certify and issue to the holder a
copy of the original; and
(b) enter details of the copy in the register.
195. An authorised officer may, on receipt of payment Evidentiary
certificates.
of the prescribed fee, issue an evidentiary certificate based
on the register specified in this Part, and which may be
produced in any administrative or legal proceedings as
evidence of the following matters –
(a) the grant, transfer, assignment, suspension,
revocation or termination of a mineral right in
accordance with the provisions of this Act;
(b) that a specified land parcel was the subject of a
mineral right on a date specified in the certificate;
(c) that a mineral specified in the certificate was the
subject of a mineral right;
(d) that a person named in the certificate is or was the
holder of a mineral right;
(e) that a condition specified in the certificate is or
was a condition of a mineral right; and
(f) that a certificate of surrender was issued with
respect to any particular land on a date specified in
a certificate.
PART XIV—MONITORING, COMPLIANCE AND
ENFORCEMENT
196. (1) The Cabinet Secretary may, by notice in the Appointment of
inspectors of
Gazette, designate duly qualified public officers, to be mines.
inspectors of mines for such jurisdictional units as may be
specified in the notice.
(2) A mines inspector shall monitor compliance and
take enforcement action and perform such other functions
as may be required under this Act or specified in the notice
of appointment.
(3) The Cabinet Secretary shall issue a mines
inspector with a document of identification.
197. (1) The Cabinet Secretary or a mines inspector General powers of
search and
authorised by the Cabinet Secretary may without prejudice inspection.
to all other written laws, at all reasonable times –
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(a) enter, inspect and examine land on which
prospecting or mining operations are being
conducted or land which is the subject of a mineral
right;
(b) enter into an area, structure, vehicle, vessel,
aircraft or building that, in the opinion of the
Cabinet Secretary or the mining inspector has been
or is being used for or in connection with
prospecting or mining operations;
(c) carry out periodic inspections of premises within
the jurisdictional limits which have been or are
being used for or in connection with prospecting
or mining operations;
(d) enter, inspect and examine any premises where
mineral dealings are being conducted;
(e) require the production of, inspect, examine, and
take copies of licences, permits, registers, records
of any kind and other documents relating to this
Act and the carrying out of operations authorised
by a mineral right, or other licence or permit
granted under this Act;
(f) take samples of any article and substances to
which this Act relates and submit such samples for
testing and analysis in such a manner as may be
prescribed;
(g) seize for a maximum period of seven days any
article, vessel, motor vehicle, plant, equipment,
substance or any other thing which the inspector
reasonably believes has been used in the
commission of an offence under this Act or
regulations made thereunder;
(h) upon giving the holder three months’ written
notice, install any equipment on any land,
premises, vessel or motor vehicle for the purposes
of monitoring compliance with the provisions of
this Act, or regulations made thereunder;
(i) enter into any premises to ascertain best mining
and mineral processing practices including safety
and health concerns;
(j) enter into any premises to examine and enquire
into the condition and ventilation of any mine or
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any building used in or connected with

prospecting, mining or mineral processing
operations and all matters relating to safety,
welfare and the health of persons employed in any
such mine or building, including the inspection of
the accident and incidents register;
(k) require such changes, as may be necessary in
regard to the safety of the operation and protection
of employees, to be implemented within a
specified time, failing which the licence holder
will be considered in breach;
(l) order the temporary cessation of operations where
he considers that the mining or processing
activities are so hazardous as to constitute a
serious and imminent danger to life;
(m)enter into any premises used in or connected with
prospecting, mining or mineral processing
operations to examine the circumstances
surrounding any accidents or incidents affecting
the health of employees including the subsequent
actions taken by licence holder; and
(n) with an arrest warrant and the assistance of a
police officer, arrest any person whom he
reasonably believes has committed an offence
under this Act.
(2) In exercising the powers under subsection (1), the
inspector of mines shall carry the identification issued
under this Act.
198. (1) A police officer of or above the rank of Power to intercept
and detain
Inspector who has reasonable cause to believe that an minerals sent by
article containing diamonds or any strategic mineral is post or courier
being conveyed by post or courier in connection with the
commission of an offence under this Act or Regulations
made thereunder or an offence has been committed, may
stop or cause the article to be stopped at any point in Kenya
either during transit or otherwise.
(2) If the person who dispatched the article referred to
in subsection (1) can be ascertained and is in Kenya, the
police officer shall by notice in writing personally served
upon that person, require him to attend, either personally or
by an agent duly authorized by him in writing, at the point
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at which the article is detained at a specified time which
shall allow reasonable opportunity for his attendance or
that of that agent, in order that he or the agent may be
present at the opening and examination of the article.
(3) At the time and place specified in a notice given
under subsection (2) the police officer shall open the article
in the presence of the person for the time being in charge of
the point of detention, and if such person or such agent
attends, in the presence of such person or such agent, and
shall, after examination, either release the article for
transmission or require the same to be detained pending an
order of a court of competent jurisdiction.
(4) If the person who dispatched the article cannot be
ascertained or is not in Kenya, the police officer may at any
time open the article at the point at which it is detained in
the presence of the person for the time being in charge of
the point of detention, and may examine the same, and
shall, after examination, either release the article for
transmission or require the same to be detained pending an
order of a court of competent jurisdiction for the disposal
thereof.
199. A police officer above the rank of an Inspector Powers of arrest.

may arrest, without warrant, any person whom he has

reasonable grounds to believe has committed an offence
under this Act, and shall take the person before a court
within the period specified in the Constitution and the
Criminal Procedure Code.
200. The Cabinet Secretary or a public officer may Court orders to
cease operations.
apply to the Environment and Land Court for orders
compelling a person to immediately stop activities and
operations for, or connected with, the search for,
prospecting, or mining of a mineral or mineral deposit in
Kenya where he reasonably believes that such operations
are being carried out in contravention of the provisions of
this Act.
201. Subject to Article 157 of the Constitution, an Powers to
prosecute.
authorised officer may institute proceedings in respect of
any contravention of any provision of this Act or for any
offence committed under this Act.
202. (1) A person who engages in activities and Offences relating
to unauthorised
operations for, or connected with, the dealing, disposition, operations
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search for, prospecting, or mining, processing, refining

export or import of a mineral or mineral deposit whether
they are processed or unprocessed in Kenya without a valid
licence or permit granted under this Act commits an
offence and is liable on conviction to—
(a) imprisonment for a term not exceeding two years;
(b) a fine not exceeding ten million shillings; or
(c) both, an imprisonment term and a fine.
(2) The Court may on the conviction of a person for
the offence under sub-section (1) or if it is satisfied that an
offence was committed notwithstanding that no person has
been convicted of the offence, order that minerals obtained
in the commission of the offence be forfeited to the
national government and be disposed of as the Court may
direct.
203. A person who is found in the possession of a Offences relating
to unauthorised
mineral, contrary to the provisions of this Act or any other possession of
written law, commits an offence and liable on conviction minerals.
to—
(a) imprisonment for a term not exceeding six
months;
(b) a fine equivalent to the value of the mineral but
not less than five hundred thousand shillings; or
(c)both, an imprisonment term and a fine.
204. A person who obstructs or hinders the holder of a Offences relating
to mineral rights
mineral right, or an agent or employee of the holder, from holders.
doing an act which is authorised under this Act or under
the terms of the mineral right commits an offence and
liable on conviction to─
(a) imprisonment for a term not exceeding three
years;
(b) a fine of not less than five million shillings; or
(c) both, an imprisonment term and a fine
205. (1) A person who – Offences relating
to monitoring and
inspection.
(a) hinders or obstructs the Cabinet Secretary or an
authorised public officer in the exercise of their
duties under this Act or Regulations made
thereunder;
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(b) fails to comply with a lawful order or requirement
made by the Cabinet Secretary or an authorised
public officer in accordance with this Act or
Regulations made thereunder;
(c) denies the Cabinet Secretary or an authorised
public officer entry upon any land, premises,
vehicle or aircraft that they are empowered to
enter under this Act or Regulations made there
under;
(d) impersonates the Cabinet Secretary or an
authorised public officer; or,
(e) denies the Cabinet Secretary or an authorised
public officer access to records or documents kept
pursuant to this Act or Regulations made
thereunder commits an offence.
(2) A person who commits an offence under this
section is liable on conviction to ─
(a) imprisonment for a term not exceeding three
years;
(b) a fine of not less than one million shillings; or
(c) both an imprisonment term and a fine.
206. (1) A person who– Offences relating
to records and
statements.
(a) fails to keep records required to be kept under this
Act;
(b) fraudulently alters any records required to be kept
under this Act; or
(c) makes false or misleading statements in any
application, report, notice, records or disclosure of
mineral value and statements that are required to
be made under this Act,
commits an offence.
(2) A person who commits an offence under this
section is liable on conviction to─
(a) imprisonment for a term not exceeding twenty-
four months;
(b) a fine of not less than one million shillings; or
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(c) both an imprisonment term and a fine

207. A person who – Offences relating
to conditions of
licences and
(a) contravenes a provision of this Act or regulations permits.
prescribed thereunder concerning the exercise of
rights or obligations under a mineral right or the
exercise of rights or obligations under any other
licence or permit obtained under this Act;
(b) contravenes a condition of a mineral right; or,
(c) contravenes a condition of mineral dealer’s
licence, a diamond dealer’s licence, an export
licence or an import licence,
commits an offence and is liable on conviction to
imprisonment for a term not exceeding three years, or to a
fine of not less than one million shillings, or to both an
imprisonment term and a fine.
208. A person who – Offences relating
to salting.
(a) places or deposits material in a place with the
intention of misleading another person as to the
mineral endowment or potential of that place; or
(b) manipulates a mineral sample to enhance its value
or in any way changes the nature of the sample
with the intention of deceiving or defrauding
another person,
commits an offence and is be liable on conviction to
imprisonment for a term not exceeding twelve months, or
to a fine of not less than fifty thousand shillings, or both an
imprisonment term and a fine.
209. A person who maliciously places a mineral in the Offences relating
to malicious
possession, or in the premises, of another person with placing of
intent that the other person shall be convicted of an offence minerals on
premises.
under a provision of this Act or under any Regulations
prescribed under this Act commits an offence and is liable
on conviction to imprisonment for a term not exceeding
twenty-four months, or to a fine of not less than five
hundred thousand shillings, or to both such imprisonment
and fine.
210. A person who disposes of, transports, exports or Offences relating
to the unlawful
imports a mineral, otherwise than in accordance with this disposal, export,
Act or the conditions of a licence obtained under this Act, or import of
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commits an offence and is liable on conviction to minerals.

imprisonment for a term not exceeding two years, or to a

fine commensurate to the value of the mineral but not less
than five hundred thousand shillings, or to both such
imprisonment and fine.
211. (1) A person who discloses confidential Offences relating
to the unlawful
information otherwise than in accordance with this Act, disclosure of
commits an offence and shall be liable on conviction to information.
imprisonment for a term not exceeding six months, or to a
fine of not more than five hundred thousand shillings, or
both a term of imprisonment and a fine.
(2) Subsection (1) shall not apply to any disclosure
made—
(a) in accordance with a provision of this Act;
(b) in connection with the administration of this Act;
(c) in connection with monitoring carried out in
accordance with a provision of this Act, or the
enforcement of a provision of this Act;
(d) in connection with legal proceedings under this
Act;
(e) for the preparation of Government statistics;
(f) for the purpose of making the information
available to a public officer or a consultant
engaged by the Government who has been duly
authorised to receive the information for the
purposes of the administration of this Act; or
(g) with the consent of the person who provided the
information.
212. (1) Where an offence is committed by a body Offences by
bodies corporate,
corporate, the body corporate and every director or officer partnerships,
thereof, or, in the case of a partnership, a partner or officer principals and
employees.
in the partnership, who had knowledge of the commission
of the offence and who did not exercise due diligence,
efficiency and economy to ensure compliance with this
Act, commits an offence and is liable on conviction to be
penalized accordingly.
(2) A person is personally liable for an offence
whether committed by him on his own account or as an
agent or employee of another person.
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(3) An employer or principal maybe held liable for an

offence committed by an employee or agent against this
Act, unless the employer or principal proves that the
offence was committed against his express or standing
directions.
213. A person who attempts to commit or aids and Attempts and
abetment.
abets the commission of an offence under this Act or any
Regulations made thereunder commits that offence and is
liable, upon conviction, to the same punishment as
provided for the principal offence under this Act.
214 Whenever it is necessary to ascertain whether a Burden of proof.

person is the holder of a mineral right, or the holder of a

licence or permit granted under this Act, or is otherwise
authorized to engage in mineral dealings, the burden of
proof shall lie on the person who alleges that he or she is
the holder of the licence or permit.
215. A person who commits an offence under this General Penalty.

Act or regulations made under this Act for which no

penalty is expressly provided, is liable on conviction to
imprisonment for a term not exceeding two years or to a
fine of not less than two million shillings or to both such
imprisonment and fine.
216. Where any offence, specified under this Act or Court orders
relating to
by regulations made under this Act, is committed by the revocation of
holder of a mineral right, or the holder of any other licence licences and
permits.
or permit given under this Act, the Court may, in addition
to any other order, further order that the mineral right,
licence or permit be revoked.
PART XV—MISCELLANEOUS PROVISIONS
217. (1) The holder of a mineral right or an agent Insurance cover.

appointed by a holder who is undertaking prospecting or

mining operations shall, with respect to those operations,
maintain insurance cover in respect of the attached risks
especially for health and safety of employees.
(2) The holder or person mentioned in subsection (1)
shall, where required by the Cabinet Secretary, furnish the
Cabinet Secretary with certified copies of certificates of
insurance that set out the insurance policy and any other
documents that are required to demonstrate that the policy
is valid, effective, and appropriate and covers the
prescribed risks.
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218. Without prejudice to any other mode of service Notices.

permitted under any rule of law, a notice sent to a person

under this Act shall be deemed to have been delivered to
the person if it is delivered personally, or sent by registered
post to the last known registered address of the person.
219. Neither the Cabinet Secretary nor any public Immunity of
officials.
officer, shall be liable to be sued in a civil court in respect
of the exercise or performance, or exercise or performance,
in good faith of a function under and for the purposes of
this Act.
220. (1) A public officer responsible for the Prohibition
against public
administration of the provisions of this Act shall not be officers acquiring
eligible for the grant of a mineral right under this Act. interests.

(2) A public officer responsible for the administration

of provisions of this Act shall not be eligible for the grant
of a mineral dealer's licence, a diamond dealer’s licence, an
export permit or an import permit under this Act.
(3) A public officer shall not directly or indirectly
acquire or retain a share or interest in a company carrying
on prospecting or mining operations in Kenya.
221. (1) The Cabinet Secretary may publish and Power to publish
manuals, codes
disseminate manuals, codes or guidelines relating to large and guidelines.
scale and small scale operations, including in relation to
environmental matters.
(2) In developing manuals, codes and guidelines for
the purposes of subsection (1), the Cabinet Secretary shall
ensure that any such publications are consistent with
guidelines issued by other Government departments,
agencies and authorities.
(3) Evidence that a person –
(a) has complied with manuals, codes and guidelines
may be used to show that the person has complied
with his environmental obligations under this or
any other Act; and
(b) has not complied with the guidelines, may be used
to show that the person has not complied with
those obligations.
222. (1) Where a radioactive mineral is discovered in Radioactive
minerals.
the course of exercising a right under this Act or under
another enactment, the holder of the mineral right or
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another person shall immediately notify the Cabinet

Secretary of the discovery.
(2) Where a radioactive mineral is discovered on land
other than land which is subject to a mining right, the
owner of the land shall immediately notify the Cabinet
Secretary of that discovery.
(3) The holder of a mineral right shall within the first
week of each month furnish the Cabinet Secretary and the
Director of Geology with a true report in writing of the
prospecting and mining operations conducted by the holder
in the immediately preceding month with respect to
radioactive minerals.
223. (1) The Cabinet Secretary may make Power to make
regulations.
Regulations necessary or convenient for the proper
administration and implementation of this Act.
(2) Without prejudice to the generality of the
foregoing, the Cabinet Secretary may make Regulations
prescribing –
(a) the fees, royalties, rent and other charges that are
payable under this Act or the manner in which
they are to be calculated;
(b) the royalties that are payable for specific minerals
or the manner in which they are to be calculated;
(c) the manner in which an area referred to in a
mineral right shall be demarcated;
(d) the manner in which records, accounts, books and
other documents shall be kept, retained and made
available for inspection;
(e) the procedures to be followed in respect of
tendering in areas that have been designated for
tendering for large scale operations in accordance
with this Act;
(f) the measures to be observed in respect of
radioactive and other restricted minerals including,
the storage and transportation of radioactive and
restricted minerals and the sale or supply of such
minerals;
(g) the measures to be included in programmes for
prospecting and mining operations that require the
Cabinet Secretary ’s approval;
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(h) the measures to be observed to protect and
rehabilitate the environment;
(i) procedures for the grant of mineral rights and
guidelines for exploration and mining in Kenya’s
territorial sea, exclusive economic zone and the
continental shelf;
(j) the areas that are excluded areas under this Act;
(k) the categories of mineral rights that are not to be
granted in prescribed areas;
(l) the form of any licence, permit, form, return or
other document to be used for the purposes of this
Act; and
(m) anything which may be prescribed under this Act
and for the better carrying into effect the
provisions of this Act.
224. The Regulations necessary to bring into effect Regulation
timelines.
the provisions of this Act shall be made within one year
after the coming into force of this Act.
PART XVI—REPEAL, SAVINGS AND
TRANSITIONAL PROVISIONS
225. (1) The following laws are hereby repealed – Repeal of
legislation and
savings.

(a) the Mining Act; Cap. 306

(b) the Trading in Unwrought Precious Metals Act; Cap. 309

and
(c) the Diamond Industry Protection Act. Cap. 310.

(2) Any Regulations made under the laws repealed

under sub-section (1) shall continue to be in force in so far
as they are consistent with this Act until such time as they
are revoked by the Cabinet Secretary.
(3) Any right contained in a lease, prospecting right,
exclusive prospecting licence, special licence and location
granted under any of the laws repealed in (1) and subsisting
immediately before the commencement of this Act, shall
continue in force until expiration by passage of time.
(4) Subject to sub-section (3) the holder of mineral
right in respect of large scale operations as defined under
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this Act and relevant Regulations, shall comply with all

boundary provisions of the Act and Regulations.
(5) Notwithstanding sub-section (4), the holder of any
mineral right in respect of a large scale operation as
defined under this Act, shall be required, not later than
eighteen months following enactment of the Act and
relevant regulations, to update its mine plan with regard to
conditions of employment, health and safety, the
management of the environment and community social
investments in order to comply with provisions of the new
Act and its Regulations.
(6) A mineral right for prospecting, mining or dealing
in minerals granted prior to this Act shall not be extended
or renewed but where the granted Mineral Right provided a
right to apply for a renewal or extension of the right, the
holder of that mineral right may apply, subject to this Act
for a similar type of licence or permit as provided for under
this Act on a priority basis.
(7) Any pending applications made under the written
laws specified in sub-se ction (1) shall be determined in
accordance with the provisions of this Act and regulations
FIRST SCHEDULE (s.2)
CLASSIFICATION OF MINERALS
A. CONSTRUCTION AND INDUSTRIAL
MINERALS
1. Alunite
2. Andalusite-Sillimanite Kyanite
3. Anhydrite
4. Aplite
5. Asbestos
6. Barite
7. Ball clay
8. Beryl, (excluding beryl as a source of beryllium
metal or as a semi-precious stone)
9. Boron minerals
10. Calcium carbonate
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11. Celestite
12. Corundum
13. Diatomite
14. Dolomite
15. Epsomite
16. Feldspar
17. Fluorite
18. Garnet for industrial purposes
19. Graphite
20. Gypsum
21. Hectorine
22. Halloysite
23. Heavy mineral sands
24. Fossil guano
25. Iodine minerals.
26. Kaolin( refractory clay),
27. Leucoxene
28. Lithium minerals
29. Limestone and marble
30. Magnesite
31. Mica
32. Nepheline
33. Nitrate
34. Olivine
35. Perlite
36. Phosphate
37. Picture-stone
38. Potash
39. Pumice
40. Pyrophyllite
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41. Quartz for industrial purposes

42. Salt
43. Sepiolite
44. Silica sand
45. Soda-ash and other sodium compounds
46. Strotianite
47. Sulphur and Pyrite
48. Syenite
49. Talc
50. Vermiculite
B. PRECIOUS STONES
1. Diamonds
2. Emeralds
3. Rubies
4. Sapphires
5. Green garnet or Tsavorite
C. PRECIOUS METAL GROUP
1. Gold
2. Osmium
3. Palladium
4. Platinum
5. Iridium
6. Silver
7. Rhodium
8. Ruthenium
D. SEMI-PRECIOUS STONES GROUP
1. Agatha
2. Amazonite
3. Amber
4. Amethyst
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5. Aquamarine
6. Aventurine
7. Beryl, (including aquamarine, heliodor and
morganite, but excluding beryl as a source of
beryllium metal or as industrial mineral).
8. Chrysoberyl
9. Chrysocolla
10. Chrysolite
11. Cordierite
12. Dioptase
13. Dumortierite
14. Garnete except green garnet
15. Jade
16. Milarite
17. Opal
18. Quartz (including amethyst, citrine, rock crystal,
rose and strawberry quartz, agate, carneline,
chelcedony, chrysoprase, jasper, moss agate,
hyalite, pietersite and tiger’s eye)
19. Sodalite
20. Topaz
21. Tourmaline
22. Turquoise
E. BASE AND RARE METALS GROUP
1. Antimony
2. Arsenic
3. Beryllium
4. Bauxite
5. Bismuth
6. Cadmium
7. Caesium
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8. Chromium
9. Cobalt
10. Copper
11. Gallium
12. Geranium
13. Hafnium
14. Indium
15. Iron
16. Lead
17. Magnesium
18. Manganese
19. Mercury
20. Molybdenum
21. Nickel
22. Niobium
23. Rhodium
24. Radium
25. “Rare Earths” or lanthanides, including the
actinides, scandium and yttrium
26. Rhenium
27. Rubidium
28. Selenium
29. Tantalum
30. Thallium
31. Tin
32. Titanium
33. Tungsten
34. Vanadium
35. Zinc or zirconium, but does not include any such
mineral if such mineral is incidentally included in
a mineral falling in any other group of minerals.
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F. FUEL MINERAL GROUP
1. NON-NUCLEAR: coal
2. NUCLEAR: source material containing Uranium
and thorium.
G. GASEOUS MINERALS
1. Carbon Dioxide
2. Helium
3. Coal seam gas
4. Water
SECOND SCHEDULE (s.4)
CRITERIA FOR DETERMINING SMALL SCALE
PROSPECTING AND MINING OPERATIONS
1. A prospecting or mining operation or a proposed
prospecting or mining operation shall be classified by the
Cabinet Secretary as a small scale operation for the
purposes of this Act where-
(a) in the case of prospecting operations, the proposed
prospecting area does not exceed twenty five
contiguous blocks; or
(b) in the case of mining operations, the proposed
mining area does not exceed two contiguous
blocks.
2. Notwithstanding paragraph (1), a prospecting or
mining operation or a proposed prospecting or mining
operation may also be classified as a small scale operation
for the purposes of this Act where-
(a) in the case of mining operations, the actual or
estimated annual extraction of minerals or material
bearing minerals does not exceed 25,000 cubic
metres; or,
(b) the prospecting or mining operations do not
employ specialised prospecting , mechanised
mining technologies ,chemicals including mercury
and cyanide or explosives; or,
(c) the proposed prospecting or mining operations, do
not involve an investment or expenditure which
exceed such amount as may be prescribed by the
Cabinet Secretary.
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3. Proposed prospecting operations or mining

operations that do not have or will not have any of the
characteristics of a small scale mining operation as
specified in paragraphs 1 or 2 shall be classified as a small
scale operation.